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UK Emissions Trading Scheme

Question for Department for Business, Energy and Industrial Strategy

UIN 90266, tabled on 14 September 2020

To ask the Secretary of State for Business, Energy and Industrial Strategy, what progress his Department has made on introducing a UK emissions trading scheme.

Answered on

23 September 2020

We intend to establish a UK Emissions Trading System (UK ETS), which will increase our ambition on carbon pricing.

The Greenhouse Gas Emissions Trading Scheme Order 2020 draft Order in Council required to set up the UK ETS was laid on 13 July 2020 in the UK and Scottish Parliaments, and on 15 July 2020 in the Welsh Parliament and Northern Ireland Assembly. Further UK ETS legislation is on track to be laid by the end of 2020, in all four legislatures.

Work on the technical systems required for a UK ETS is also proceeding as planned.

in order to ensure a carbon price remains in place in all scenarios, the UK published a consultation in July 2020 on the design of a Carbon Emission Tax as an additional alternative to a UK ETS.