The Government has announced a UK Emissions Trading Scheme (ETS) to replace UK participation in the EU ETS from 1 January 2021, as part of its Energy White Paper. The UK’s ETS will apply to energy intensive industries, the power generation sector and aviation. From day one, the cap on emissions allowed within the system will be reduced by 5%. The UK ETS Authority and its regulators will release guidance necessary to advise operators and facilitate their compliance obligations with the UK ETS. Guidance on Participating in the UK ETS and aviation headline guidance will be published in the coming days. Further information can be found here.

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