UK ETS Consultation: Summary for all UK ETS participants

The Swan Energy team has produced a guidance document which summarises the Developing the UK Emissions Trading Scheme (UK ETS) consultation document under  a number of headlines. The first was for “All UK ETS Participants” and here we lift out five key points.

In summary:

 

1 – The Authority proposes to introduce a Net Zero Consistent Cap to align the UK ETS with the UK’s net-zero pathway causing the price of allowances and the civil penalty price to increase significantly.

The Authority wishes to hear your thoughts on the following. This section relates to Questions 1 – 3 in the response survey.

  • Do you agree with the proposed NZCC allowance range (887 million to 936 million) – from a current rate of 1365 million; a 30-35% drop.
  • How would the NZCC effect your activity and emission reduction plans?

 

2 – The 20MWth and 3MWth UK ETS inclusion thresholds are under review.

Given what is outlined below, if your organisation operates facilities that fall just under the 20MWth, power generation or otherwise, you may consider informing the Authority of the size and number of your facilities that may be caught if the threshold was lowered to other given capacities.

The Authority wishes to hear your thoughts on the following. This section relates to Questions 102 – 111 in the response survey.

  • Do you have data on the number, scale and/or emissions level of installations that are currently not monitored under the UK ETS because of the two thresholds?
  • What evidence should be considered when considering lowering the 20MWth threshold?
  • Do you agree that lowering the 20MWth would capture more operators of combustion units into the UK ETS?
  • Do you agree that lowering the 3MWth aggregation threshold would capture more operators of combustion units into the UK ETS?
  • Does the UK ETS support the decarbonisation of small power generators

 

3 – The Authority proposes to introduce a statutory appeal route to appeal decisions made by the Authority.

The Authority wishes to hear your thoughts on the following. This section relates to Question 187 in the response survey.

  • Do you agree with the proposal?

 

4 – The Authority proposes to introduce a £5000 penalty for failure to submit information to the regulator.

The Authority wishes to hear your thoughts on the following. This section relates to Question 190 in the response survey.

  • Do you agree with the proposal?
  • Do you agree that a fine of £5 000 is appropriate when operators fail to submit the information to regulators?

 

5 – The Authority proposes to allow for the transport of carbon via methods other than pipelines, without having to surrender allowances.

The Authority wishes to hear your thoughts on the following. This section relates to Questions 93 – 95 in the response survey.

  • Do you agree with the proposal?
  • Will this proposal positively or adversely impact the wider UK ETS?
  • What mitigation strategies, if any, should be applied alongside CO₂ transportation for CCUS?
  • Do you believe this would encourage your installation to explore CCUS?

 

More detailed that is relevant to all UK ETS participants is included in our summary document. If anyone would like to receive the full guide, please call us on 01484 843867 or email info@swanenergy.co.uk and we’ll be in touch.

Swan Energy has been involved with the UK ETS (formerly EU ETS) since its conception 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.