Guidance 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.

From:
Department for Business, Energy & Industrial Strategy
Published:Published
17 December 2020
Last updated:updated
10 MarchSeptember 2021,2021 — seeSee all updates

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Participating in the UK ETS

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A UK Emissions Trading Scheme (UK ETS)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

Published 17 December 2020
Last updated 10 September 2021 + show all updates

  1. 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.

  2. We have added the average carbon price in July 2021 and the EUCost EmissionsContainment TradingMechanism System(CCM) (EUtrigger ETS)for mustNovember still2021. complyWe withhave theiralso obligationsmade underclear that systemthe CCM cannot be triggered in August, September and October.

  3. Guidance updated to provide additional clarity to the calculation of the CCM trigger price. We have also updated the CCM trigger price for October 2021 and the 2020Actual complianceDecember year.Futures Foraverage moreprice information,for seeJune.

  4. We have published the Aviation Allocation Table which contains a list of each aircraft operator’s free allocation entitlement for the 2021 to 2025 allocation period.

  5. We have provided more guidance on EUthe ETSCost obligationsContainment Measure (CCM), the September CCM trigger price and the average May UK allowance price.

  6. We aim to allocate allowances for the 2021 scheme year to operator holding accounts in the UK ETS Registry by 28 May 2021.

  7. .

    We have published the Allocation Table, which contains a list of each installation's free allocation for the 2021 to 2025 allocation period.