UK Emissions
Trading Scheme
(UK ETS)

What is the UK ETS?

The UK ETS is a ‘cap and trade’ system, aimed with reducing the total greenhouse gas emissions from energy intensive industries. Emissions are converted into tradable allowances, with the capped emissions reducing each year to provide an economic incentive for installations to decarbonise.

The scheme was introduced by the UK Government for UK installations post-Brexit. Phase 1 was launched in January 2021. It replaces the EU ETS and is overseen by the UK ETS Authority (part of the Department for Energy Security and Net Zero).

UK ETS - Young Engineer
The UK Emissions Trading Scheme and the EU Emissions Trading System.

Who does the UK ETS
apply to?

The UK ETS applies to energy intensive industries where stationary installations have a combined thermal input capacity of greater than 20 MW thermal, made up of units greater than 3 MW thermal.

How can we help?

Swan Energy is a UK ETS consultancy firm that has been involved with the scheme (formerly EU ETS) since its inception and delivers 100% compliance for our clients. We are experts in Greenhouse gas legislation and carbon reporting and have extensive knowledge and experience in the operation of Emissions Trading Systems.

Help, support, advice and guidance

UK ETS compliance and reporting service

Swan Energy ensures you are fully compliant with all the aspects of the scheme, relieving hassle and the risk of mistakes. We offer peace of mind that all the obligations and requirements of the scheme are met and are a trusted partner and adviser. We shield our clients from the complexities of the reporting process and take the headache out of compliance. 

Our UK ETS consultancy service is always tailored to your needs and can include:

UK ETS Baselining in 2026

The 2026 UK ETS baseline window (1 April-30 June) is the second of two submissions required in preparation for the next allocation period beginning in 2027. It determines how much free allocation full participant installations will receive for 2027-2030 and how exposed they may be to carbon costs for the rest of the decade.

2026 is a critical year for assurance and compliance and our team is here to help and support you through the UK ETS Baseline Cycle.

Energy-from-Waste and Waste Incineration

 

The UK ETS is to include Energy-from-Waste (EfW) and waste incineration installations. From 1 January 2026 until 31 December 2027, operators can take part in a voluntary Monitoring, Reporting and Verification (MRV) period. This allows operators to build their monitoring systems, test their data, and work with regulators before inclusion and carbon‑cost obligations become mandatory in 2028.

Help, support, advice and guidance

Swan Energy Facts & Figures

90+ installations

We support over 90 UK installations with their mandatory energy reporting.

1 million tonnes CO2

Swan Energy reported over one million tonnes of CO2 for ETS clients in the 2024 reporting year.

£49.90/tonne Carbon Price

Average cost of Carbon. Data for 2025.

Man in suit smiling at camera arms folded

We fully understand the requirements to meet the verification standards

We have Verifiers for a UKAS accredited verification body for the UK ETS working as part of the team. This means that as well as preparing reports for verification, we fully understand the requirements to meet the verification standard.

Swan Energy Know How

Do you have more questions about UK ETS? The Swan Energy team has lots of KNOW HOW and we are experts in this field. Tap into our bank of knowledge…