Department for Business, Energy & Industrial Strategy
- The future of UK carbon pricing - UK government and devolved administrations' response - PDF, 631KB, 68 pages
Detail of outcome
The UK government and devolved administrations (DAs) consulted in May 2019 on the future of carbon pricing in the UK. Our response sets out our decisions on the design and operation of a UK Emissions Trading System (ETS).
Chapter 1 sets out the proposals for the main design features of a UK ETS, primarily related to stationary installations. These proposals broadly mirror the approach laid out in the consultation. We have adopted the majority of proposals outlined in the consultation.
Chapter 2 covers the operation of the system. These proposals broadly mirrored the operational approach in phase IV of the EU ETS, with the exception of proposals on Monitoring, Reporting & Verification (MRV) and auctioning, where we proposed some changes.
Chapter 3 sets out proposals on aviation to ensure the sector continues to make a proportionate and cost-effective contribution to achieving the UK’s high climate ambition. These proposals broadly mirror the approach to aviation outlined in the consultation document.
Included is our impact assessment of the design of a standalone UK ETS, and our response to the most recent Committee on Climate Change advice on a standalone UK ETS.
The response to Chapter 4 of the consultation was published in October 2019. All policy proposals put forward in chapter 4 of the consultation, with the exception of regulatory responsibility for carbon capture and storage across all devolved administrations, will be implemented into domestic legislation.
NI electricity generators shall remain in the EU ETS by virtue of the Ireland/Northern Ireland Protocol...more
