UK’s emissions market risks falling short
Standalone system will be just 10pc as large as its EU equivalent, and important details have not been announced
The UK has launched a domestic emissions trading system (ETS) to replace its membership of the EU ETS—but experts are concerned that the market’s rules are still not complete and it may not lead to a cut in emissions until 2030. The new mechanism, which took effect on 1 January, targets net-zero emissions by 2050 via progressively lowering the limit on CO2 emissions from industrial plants. Britain’s ETS will be c.10pc the size of the EU system but will cover the same sectors and installations that participated in the EU market. Companies such as Scottish energy provider SSE, British Airways and British Steel will need to buy and surrender allowances matching their annual emissions; penalties
Also in this section
28 March 2025
The massive expansion of the Northern Lights project in Norway is the clearest sign yet that the European oil and gas companies mean business when it comes to CCS
27 March 2025
Awards celebrate global innovation, leadership and achievement across the energy sector’s people, projects, technologies and companies.
20 March 2025
While advanced economies debate peak fossil fuel demand, billions of people still lack access to reliable and affordable energy, especially in the Global South
14 March 2025
Ignoring questions of sustainability will not make the problems they focus on go away
