Call for evidence on the UK ETS Free Allocation

The Department for Business, Energy and Industrial Strategy (BEIS) has issued a call for evidence on the UK ETS Free Allocation. This is part of an ongoing review to develop the UK ETS, beginning this year.

Areas up for review, later in the year, include setting a net zero consistent cap trajectory, a supply adjustment mechanism and inclusion of more sectors within the scope of ETS.

The main question posed in this review is how can the use of free allocation better incentivise emissions reduction whilst protect industries from carbon leakage as we drive towards net zero 2050?

This call for evidence will be used to frame the review and develop more targeted proposals for the consultation later in 2021.

To view further details and to download the full document, please click hereThe questions can be found on page 9 of the full document and responses should be sent to emissions.trading@beis.gov.uk by 23rd April.

The Swan Energy team is happy to respond on behalf of its clients, should that be preferred.