Emissions Trading
Department for Energy Security and Net Zero
3rd Floor
3-8 Whitehall Place
London
SW1A 2EG
UK Emissions Trading Scheme: free allocation review - carbon leakage
- From:
- Department for Energy Security and Net Zero
- Published
- 16 December 2024
- Last updated
- 26 November 2025 — See all updates
This consultation has concluded
Detail of outcome
This review has concluded. The full UK ETS Authority response is available from the UK ETS: free allocation review consultation page.
Detail of feedback received
We received over 50 responses from a wide range of organisations including:
- industrial operators
- industry trade associations
- power generators
- non-governmental organisations (NGOs)
- academics and think tanks
Original consultation
Summary
The UK ETS Authority is seeking views on using the Carbon Leakage List to determine UK ETS free allocation eligibility, and proposals for free allocation adjustment for sectors covered by the UK Carbon Border Adjustment Mechanism.
This consultation closesran atfrom
to
Consultation description
The UK ETS Authority is seeking views on a number of proposals to improve our approach to Free Allocations, specifically:
- the approach to calculating the Carbon Leakage Indicator and setting the Carbon Leakage List
- the approach to adjusting Free Allocations for Carbon Border Adjustment Mechanism (CBAM) sectors
This is an interim consultation following the 2023 UK ETS Free Allocation Review consultation where the Authority committed to publish a draft UK Carbon Leakage List and put forward further options on free allocation adjustments for CBAM sectors. The Authority has used responses from that 2023 consultation to form these new proposals, and has included a summary of those responses in this consultation document.
This consultation will be of particular interest to:
- individual companies
- representatives of industrial and power sectors with obligations under the UK ETS
- environmental groups
It is not limited to these groups though - any organisation or individual is welcome to respond.
The consultation is supported by a NERA Technical Report on Carbon Leakage Indicators and an Analytical Annex on the Free Allocation adjustments for CBAM sectors.
Documents
Free Allocation Review: carbon leakage consultation
PDF, 799 KB, 45 pages
Analytical annex: Free allocation for Carbon Border Adjustment Mechanism (CBAM) sectors
PDF, 522 KB, 23 pages
Adolygiad o Ddyraniadau am Ddim: ymgynghoriad ar ddadleoli carbon
PDF, 962 KB, 47 pages
This file may not be suitable for users of assistive technology.
Request an accessible format.
If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email alt.formats@energysecurity.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.
Atodiad Dadansoddol: Dyraniadau am ddim ar gyfer sectorau CBAM
PDF, 555 KB, 25 pages
This file may not be suitable for users of assistive technology.
Request an accessible format.
If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email alt.formats@energysecurity.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.
Ways to respond
or
Email to:
ukets.consultationresponses@energysecurity.gov.uk
Write to:
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Updates to this page
Published 16 December 2024
Last updated 26 November 2025
href="#full-history">+ show all updates
-
Link to UK ETS Authority main response added.
-
First published.
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Update history
2025-11-26 17:00
Link to UK ETS Authority main response added.
2024-12-16 17:00
First published.
Original consultation
Summary
The UK ETS Authority is seeking views on using the Carbon Leakage List to determine UK ETS free allocation eligibility, and proposals for free allocation adjustment for sectors covered by the UK Carbon Border Adjustment Mechanism.
This consultation closesran atfrom
to
Consultation description
The UK ETS Authority is seeking views on a number of proposals to improve our approach to Free Allocations, specifically:
- the approach to calculating the Carbon Leakage Indicator and setting the Carbon Leakage List
- the approach to adjusting Free Allocations for Carbon Border Adjustment Mechanism (CBAM) sectors
This is an interim consultation following the 2023 UK ETS Free Allocation Review consultation where the Authority committed to publish a draft UK Carbon Leakage List and put forward further options on free allocation adjustments for CBAM sectors. The Authority has used responses from that 2023 consultation to form these new proposals, and has included a summary of those responses in this consultation document.
This consultation will be of particular interest to:
- individual companies
- representatives of industrial and power sectors with obligations under the UK ETS
- environmental groups
It is not limited to these groups though - any organisation or individual is welcome to respond.
The consultation is supported by a NERA Technical Report on Carbon Leakage Indicators and an Analytical Annex on the Free Allocation adjustments for CBAM sectors.
Documents
Free Allocation Review: carbon leakage consultation
PDF, 799 KB, 45 pages
Analytical annex: Free allocation for Carbon Border Adjustment Mechanism (CBAM) sectors
PDF, 522 KB, 23 pages
Adolygiad o Ddyraniadau am Ddim: ymgynghoriad ar ddadleoli carbon
PDF, 962 KB, 47 pages
This file may not be suitable for users of assistive technology.
Request an accessible format.
If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email alt.formats@energysecurity.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.
Atodiad Dadansoddol: Dyraniadau am ddim ar gyfer sectorau CBAM
PDF, 555 KB, 25 pages
This file may not be suitable for users of assistive technology.
Request an accessible format.
If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email alt.formats@energysecurity.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.
Consultation description
The UK ETS Authority is seeking views on a number of proposals to improve our approach to Free Allocations, specifically:
- the approach to calculating the Carbon Leakage Indicator and setting the Carbon Leakage List
- the approach to adjusting Free Allocations for Carbon Border Adjustment Mechanism (CBAM) sectors
This is an interim consultation following the 2023 UK ETS Free Allocation Review consultation where the Authority committed to publish a draft UK Carbon Leakage List and put forward further options on free allocation adjustments for CBAM sectors. The Authority has used responses from that 2023 consultation to form these new proposals, and has included a summary of those responses in this consultation document.
This consultation will be of particular interest to:
- individual companies
- representatives of industrial and power sectors with obligations under the UK ETS
- environmental groups
It is not limited to these groups though - any organisation or individual is welcome to respond.
The consultation is supported by a NERA Technical Report on Carbon Leakage Indicators and an Analytical Annex on the Free Allocation adjustments for CBAM sectors.
Documents
Free Allocation Review: carbon leakage consultation
PDF, 799 KB, 45 pages
Analytical annex: Free allocation for Carbon Border Adjustment Mechanism (CBAM) sectors
PDF, 522 KB, 23 pages
Adolygiad o Ddyraniadau am Ddim: ymgynghoriad ar ddadleoli carbon
PDF, 962 KB, 47 pages
This file may not be suitable for users of assistive technology.
Request an accessible format.
If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email alt.formats@energysecurity.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.
Atodiad Dadansoddol: Dyraniadau am ddim ar gyfer sectorau CBAM
PDF, 555 KB, 25 pages
This file may not be suitable for users of assistive technology.
Request an accessible format.
If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email alt.formats@energysecurity.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.
Ways to respond
or
Email to:
ukets.consultationresponses@energysecurity.gov.uk
Write to:
Share this page
The following links open in a new tab
Updates to this page
Published 16 December 2024
Last updated 26 November 2025
href="#full-history">+ show all updates
-
Link to UK ETS Authority main response added.
-
First published.
Sign up for emails or print this page
Update history
2025-11-26 17:00
Link to UK ETS Authority main response added.
2024-12-16 17:00
First published.