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.
Documents
Details
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.
Last updated
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Added timetable for onboarding UK Emissions Trading Registry accounts.
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The calendar for UK ETS auctions in 2021 has been published by auction platform provider ICE. We have included a link to the calendar from this guidance.
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Section on auctioning updated to include information on the Auction Reserve Price, the Cost Containment Mechanism and the Auctioning Regulations.
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First published.
Update history
2025-05-14 14:30
The UK ETS Authority began the second phase of the scheme evaluation in 2025 and will launch a second survey to collect further evidence in June 2025.
2025-03-04 15:30
We have published the latest version of Uncertainty assessments for installations here:
2025-02-07 15:00
Added link to Baseline Data Report guidance and templates.
2024-11-11 15:13
All installation operators within scope of the UK Emissions Trading Scheme (UK ETS) are required to submit data to their regulator between 1 April to 30 June 2025.
2024-10-25 17:13
Added a section to include information on supply of allowances.
2024-01-02 11:47
Added link to the evaluation of the UK ETS Phase 1.
2023-11-30 17:15
We have updated section 8. Activity Level Changes – COVID-19 with further guidance on the Activity Level Changes Regulation.
2023-09-04 15:38
Updated with details of new reporting service process now ETSWAP is no longer being used.
2023-04-17 17:15
We have provided an update on the new permitting, monitoring and verification system, now called Manage Your UK Emissions Trading Scheme Reporting Service (METS)
2023-03-21 17:15
Update added regarding a forthcoming evaluation to understand the effectiveness of the scheme’s implementation.
2023-03-08 13:11
Added link to UK / Swiss memorandum of understanding on aviation in their respective Emissions Trading Schemes.
2022-10-18 11:05
Added Offshore Petroleum Regulator for Environment and Decommissioning (OPRED) contact details.
2022-10-12 17:15
New section ‘Activity Level Changes – COVID-19’ added to ‘Participating in the UK ETS’ guidance.
2022-09-23 14:15
The launch of the new permitting, monitoring, reporting and verification system that will replace ETSWAP has been postponed until 2023 – exact dates to be confirmed.
2022-07-13 15:04
UK ETS guidance note: uncertainty assessments for installations added.
2022-01-18 18:02
Added link to January 2022 Cost Containment Mechanism decision.
2022-01-10 17:15
Details added about new digital permitting, monitoring, reporting and verification system being introduced from autumn 2022.
2021-12-31 17:15
The UK ETS Cost Containment Mechanism (CCM) has triggered for January.
2021-12-14 17:20
Added link to new UK ETS Cost Containment Mechanism decisions page.
2021-11-30 17:48
Published the latest monthly update on the scheme’s Cost Containment Mechanism (CCM).
2021-11-10 17:15
Published the latest monthly update on the scheme’s Cost Containment Mechanism (CCM).
2021-10-22 17:16
We have updated the reference to the 2021 auction calendar. This was published by ICE Futures Europe (ICE) on 19 October and includes surplus allowances set aside (but not required) for 2021 aviation free allocation entitlements.
2021-10-11 17:15
Published the latest monthly update on the scheme's Cost Containment Mechanism (CCM).
2021-09-29 17:00
The Activity Level Report submission process has been updated.
2021-09-10 17:15
Published the latest monthly update on the scheme's Cost Containment Mechanism (CCM) to include the latest CCM trigger price and the August average price. The August average price was below the November trigger price, therefore the earliest the CCM can be triggered is December 2021.
2021-03-10 17:22
Added timetable for onboarding UK Emissions Trading Registry accounts.
2021-02-26 13:32
The calendar for UK ETS auctions in 2021 has been published by auction platform provider ICE. We have included a link to the calendar from this guidance.
2021-02-11 18:05
Section on auctioning updated to include information on the Auction Reserve Price, the Cost Containment Mechanism and the Auctioning Regulations.