Carbon price set for civil penalties in 2024.

The UK ETS Authority has determined the carbon price for use in civil penalties during the 2024 reporting year will be £64.90.

 

What is the carbon price for civil penalties?

Hospitals and small emitters (HSEs) are installations within UK ETS that can chose to opt out of the main scheme, if they meet both of the following criteria:

  • thermal input capacity less than 35 MW
  • annual emissions less than 25 000 tCO2

 

These installations do not need to purchase and surrender allowances but instead are given an annual emissions target, which decreases each year. In lieu of surrendering allowances, these installations must pay a set rate per tonne of CO2 that they emit over their target for that reporting year.

Each year at the end of November, the UK ETS Authority calculates the carbon price that will be used in civil penalties in the following reporting year – £64.90 for 2024 reporting.

 

How is the carbon price calculated?

This price is the average daily trading price of a single UK ETS allowance over the previous 12 months. In the case of the 2024 price above, this is the daily average carbon price traded on the carbon exchange between the 11th of November 2022 and the 11th of November 2023.

The civil penalty rate for HSEs is closely linked to the cost of allowances for full UK ETS participants, although any change to the cost of allowances isn’t reflected in the civil penalty rate until the following reporting year.

For the first time in UK ETS, the carbon price was lower than the previous year. Below are the yearly Civil Penalty Carbon Price figures going back to 2021.

  • 2021 – £47.96
  • 2022 – £52.56
  • 2023 – £83.03
  • 2024 – £64.90

 

Can I become an HSE/Opt-Out:

Applications for the current, 2021 to 2025, allocation period are closed.

Eligible installations will be able to apply to opt out for the 2026 to 2030 allocation period from the 1st of April 2024.

To get in touch with the Swan Energy team, click here for contact details.

Shaun McGregor

Carbon Consultant

Shaun McGregor

Carbon Consultant

Shaun joined the Swan Energy team in December 2021. He graduated in 2019 with a Bachelors in Chemical Engineering and has been working for the NatWest before joining Swan, which has equipped him with excellent customer service skills.

In his role at Swan Energy, Shaun is supporting the consultancy work the team does with clients across the UK.