UK ETS (Emissions Trading Scheme)

The UK Emissions Trading Scheme replaced the UK's participation in the EU ETS following Brexit, effective January 2021. It covers energy-intensive industries, power generation, and aviation within the UK, with a cap that declines to align with net zero by 2050. Covered installations must surrender allowances equal to their verified emissions. The UK ETS Authority (comprising DESNZ, Scottish Government, Welsh Government, and DAERA) manages the scheme. UK ETS allowance prices have typically traded between £30-100/tCO₂.