Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 26 JULY 2023

The UK Emissions Trading Scheme (UK ETS): Consultation Response

Norton Rose Fulbright
Explore more from Norton Rose Fulbright

On 3 July 2023, the UK ETS Authority (the Authority) published its response to the March 2022 consultation on reforming the UK ETS (the Consultation).

United KingdomEnvironment
Lucy Bruce Jones
Lucy Bruce Jones
Giulia Barbone
Giulia Barbone

On 3 July 2023, the UK ETS Authority1 (the Authority) published its response to the March 2022 consultation on reforming the UK ETS (the Consultation). The Consultation sought views on various proposals designed to meet the Authority's commitment to implementing a net zero consistent cap for the UK ETS, reviewing the free allocation policy, and expanding the use of emissions trading across the economy. It is clear from the Authority's response to the Consultation that stakeholder input has been considered and progressive structural changes are going to be introduced to the UK ETS.

Background

The UK ETS was established in January 2021 (to replace the EU ETS after the end of the Brexit transition period). In March 2022, the Authority launched the Consultation, focusing on proposals to align the UK ETS's cap with net zero and review the role of the free allocation policy as a carbon leakage mitigation tool (see summary in our previous article). It also

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

The EU Packaging And Packaging Waste Regulation Is Now Applicable: What Businesses Need To Know

The EU Packaging and Packaging Waste Regulation (PPWR) became generally applicable on 12 August 2026, introducing comprehensive sustainability, labeling, and conformity requirements that affect businesses placing packaged products on the EU market. Companies exporting to the EU must now treat packaging as part of product compliance rather than simply a waste issue, with key obligations already in force despite many requirements being phased in through 2030. Businesses that have not yet assessed their packag
European UnionEnvironment
McDermott Will & Schulte
McDermott Will & Schulte
Article

EU Sustainability Omnibus Package: Key Changes And Implications For Businesses

The European Union has introduced a comprehensive Sustainability Omnibus Package that will significantly impact how businesses across member states approach environmental, social, and governance reporting. Understanding these regulatory changes is crucial for companies operating in or with the EU to ensure compliance and adapt their sustainability strategies accordingly.
European UnionEnvironment
Eversheds Sutherland
Eversheds Sutherland
Article

Rewilding And Carbon Credits: A New Income Stream For Landowners

As sustainability pressures mount and net-zero targets drive demand for carbon offsetting, UK landowners face a significant opportunity to generate income through carbon credit schemes. With the market contributing £1.2 billion to the UK economy in 2025 and carbon credits trading at £25-£35 per tonne, peatland restoration and woodland creation projects offer substantial returns while enhancing biodiversity and environmental protection.
United KingdomEnvironment
Withers LLP
Withers LLP
Article

Environment Agency Consults On Updates To Its Enforcement And Sanctions Policy

The Environment Agency has launched a consultation on significant reforms to its Enforcement and Sanctions Policy, introducing new civil penalty frameworks and automatic financial penalties for water companies under the Water (Special Measures) Act 2025. The proposed changes expand enforcement mechanisms across multiple sectors including waste management, packaging regimes, and mercury controls, while establishing a fundamentally different regulatory approach for water sector operators that allows penalties
United KingdomEnvironment
Burges Salmon LLP
Burges Salmon LLP