Guidance

Participating in the UK Emissions Trading Scheme (UK ETS)

This guidance explains who the UK Emissions Trading Scheme (UK ETS) applies to and what is required of businesses that are covered.

Published 17 December 2020
Last updated 11 February 2021 — see all updates
From:
Department for Business, Energy & Industrial Strategy

Documents

Participating in the UK ETS

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A UK Emissions Trading Scheme (UK ETS) replaced the UK’s participation in the EU ETS on 1 January 2021. The 4 governments of the UK have established the scheme to increase the climate ambition of the UK’s carbon pricing policy, whilst also protecting the competitiveness of UK businesses.

This guidance explains who the UK ETS applies to and what is required of businesses that are covered.

Participants in the EU Emissions Trading System (EU ETS) must still comply with their obligations under that system for the 2020 compliance year. For more information, see guidance on EU ETS obligations in 2021.

Published 17 December 2020
Last updated 11 February 2021 + show all updates

  1. Section on auctioning updated to include information on the Auction Reserve Price, the Cost Containment Mechanism and the Auctioning Regulations.

  2. First published.