Developing the UK ETS Guidance: Summary for all UK ETS participants

The Swan Energy team has produced a guidance document to summarise the updates shared in: Developing the UK Emissions Trading Scheme (UK ETS) – Main Response


Over the coming weeks we will share key points for different audiences. This update is for All UK ETS Participants.

1 – Introduction of the Net Zero Consistent Cap

The UK ETS cap will be set in line with the UKs net zero ambitions. Allowances will be capped at 936 million, the maximum number of allowances previously proposed by the Authority. Actions will also be set in place to smooth the transition and ensure there is no sudden drop in allowances between 2023 and 2024.

2 – Reviewing the UK ETS Megawatt Thresholds

The Authority will continue to review the thresholds and whether the thresholds should vary depending on sector. A further consultation will be released in the future. No changes to either the 3 MW or 20 MW thresholds have been made at this time.

3 – Appeal Routes

Appeal routes will not be implemented at this time. They may be revisited in future proposals.

4 – Failure to Submit Information Penalty

The Authority will introduce the failure to submit information penalty of £5 000 as proposed. This will be implemented by the 1st January 2025.

5 – Carbon, Capture, Utilisation & Storage, and Transportation

The Authority is investigating how best to integrate none-pipeline transportation of CO2 into the existing UK ETS framework. This should encourage greater uptake of carbon capture technologies.

The Authority is also putting together standards for the emissions that occur through the transportation of CO2 (e.g., by ships, rail, and road, and compression of CO2). As these should also be accounted for.

If anyone would like to receive the full summary document from Swan Energy, please call us on 01484 843867 or email and we’ll be in touch.

Swan Energy has been involved with the UK ETS since its inception and delivers 100% compliance for our clients. Click here to find out more about our service.

Rebecca Scarratt

Carbon Consultant

Rebecca Scarratt

Carbon Consultant

Rebecca has joined the Swan Energy team in 2021. She graduated from the University of Hull with a BSc in Geology with Physical Geography in 2020 and went on to do a MSc in Renewable Energy. Her Masters’ thesis focused on how future climate change may impact the Humber region’s wind energy sector and how adaptation strategies could be used to reduce vulnerability.

In her role at Swan Energy, Rebecca supports the consultancy work the team does with clients across the UK.