ARTICLE · 13 NOVEMBER 2023

New Changes: The UK Emissions Trading Scheme (UK ETS)

Norton Rose Fulbright Hong Kong

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Minor amendments to the legislation governing the UK ETS have been laid in Parliament and are intended to come into force on 1 January 2024. The amendments follow on from the Government's...

United KingdomTransport

Lucy Bruce Jones

Introduction

Minor amendments to the legislation governing the UK ETS have been laid in Parliament and are intended to come into force on 1 January 2024. The amendments follow on from the Government's response to the March 2022 consultation on reforming the UK ETS scheme (see our previous article: The UK Emissions Trading Scheme (UK ETS): Consultation Response).

Background

The UK ETS was established in January 2021, to replace the UK's participation in the EU Emissions Trading System (EU ETS) after the Brexit transition period. Like the EU ETS, the UK ETS is designed to tackle greenhouse gas emissions through a cap-and-trade scheme.

Practical implications

The amending legislation is focused on supporting the ongoing transformation of energy systems and transition to a low carbon economy, and will have the following effects:

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