UK ETS Scheme Guidance Update

The Swan Energy team has produced a guidance document to summarise the updates shared in: Developing the UK Emissions Trading Scheme (UK ETS) – Main ResponseWe are sharing key points for different groups and industries.


This update is for Hospitals and Small Emitters, Biomass, and Waste Incinerators and Energy from Waste Plants. 

1 – Hospitals and Small Emitters. 

The Authority will provide a one-off window between January and March 2023 for Hospitals and Smaller Emitters to re-enter the main UK ETS scheme from 2024 onwards.

Operators voluntarily re-entering the scheme will be eligible to apply for free allocation providing they made an application that was assessed as valid for free allocation under Phase IV of the EU ETS.

The Authority is considering the opportunity for those operators that have reduced their emissions to below 25,000 or 2,500 tCO2 per annum to join the HSE or USE schemes. A further consultation will be released in due course.

2 – Biomass

At present only bioliquids are subject to a ‘sustainability criteria’. The Authority is proposing to apply a sustainability criterion to all solid, liquid, and gaseous biomass, for all installations.

The Authority deems the implementation of a UK ETS sustainability criteria to be of highest importance. However, no changes will be made at present, and full consultation will be released later in 2023.

3 – Waste Incinerators and Energy from Waste Plants

The Authority is amending the UK ETS legislation to include Energy from Waste (EfW) and waste incineration sites from 2028. Installations will be required to monitor emissions from 2026-2028 in preparation.

The incineration of hazardous and clinical waste will not be exempt from the UK ETS however measures will be put in place reduce the risk of carbon leakage or waste crime.

The monitoring, reporting and verification of such installations will be the responsibility of the operator.

The Authority are expecting the inclusion of EfW plants in the UK ETS to incentivise emission reduction and increase efficiency of plants. It may also incentivise recycling and better sorting of waste, as well as trigger an increased uptake of heat offtake and CCS technology.

A further consultation about the UK ETS Scheme will be released in late 2023.

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

Swan Energy has been involved with the UK ETS scheme 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.