The UK ETS Authority has analysed stakeholder views and feedback on the consultation to extend the UK Emissions Trading Scheme beyond 2030, including the advice of the Climate Change Committee, and has made the following decisions:

• the UK ETS will be extended into a Phase II from 2031
• this phase will run for 10 years from 1 January 2031 to 31 December 2040
• banking of allowances will be permitted between Phase I and Phase II of the Scheme

Next steps

We will seek to consult again on a specific trajectory for the Phase II cap in due course, including the analytical basis for the range of trajectories we are considering, and the emerging impacts of those trajectories.​

The entire second-stage consultation process, including an Authority response, will occur sufficiently ahead of the beginning of Phase II on 1 January 2031 to provide the required certainty for participants.

We received 65 responses to this consultation, representing a range of sectors including:

• energy
• chemicals
• aviation
• oil and gas

Respondents provided feedback on phase length, interphase banking and the importance of the long-term future of the scheme.