Latest ETS changes – more gradual and more pragmatic

The main thrust of the latest amendments to the Emissions Trading Scheme (ETS), widely telegraphed in advance, is to further soften the scheme's implementation to avoid imposing increased costs on business in the current economic climate.

But some changes also reflect an increasing willingness by the Government to move away from some of the bedrock principles of the ETS – doubtless based on the benefit of a couple of years of experience with an operative scheme.

Key changes

Most of the bigger changes were signalled in the consultation earlier this year, though some proposals have been altered. Notably the Government no longer intends to introduce limits on the number of international units that can be surrendered.