Open consultation

UK Emissions Trading Scheme: free allocation review - carbon leakage

Summary

The UK ETS Authority is seeking views on using the Carbon Leakage List to determine UK ETS free allocation eligibility, and proposals for free allocation adjustment for sectors covered by the UK Carbon Border Adjustment Mechanism.

This consultation closes at

Consultation description

The UK ETS Authority is seeking views on a number of proposals to improve our approach to Free Allocations, specifically:

  • the approach to calculating the Carbon Leakage Indicator and setting the Carbon Leakage List
  • the approach to adjusting Free Allocations for Carbon Border Adjustment Mechanism (CBAM) sectors

This is an interim consultation following the 2023 UK ETS Free Allocation Review consultation where the Authority committed to publish a draft UK Carbon Leakage List and put forward further options on free allocation adjustments for CBAM sectors. The Authority has used responses from that 2023 consultation to form these new proposals, and has included a summary of those responses in this consultation document.   

This consultation will be of particular interest to:

  • individual companies
  • representatives of industrial and power sectors with obligations under the UK ETS
  • environmental groups

It is not limited to these groups though - any organisation or individual is welcome to respond. 

The consultation is supported by a NERA Technical Report on Carbon Leakage Indicators and an Analytical Annex on the Free Allocation adjustments for CBAM sectors.

Documents

Adolygiad o Ddyraniadau am Ddim: ymgynghoriad ar ddadleoli carbon

Request an accessible format.
If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email [email protected]. Please tell us what format you need. It will help us if you say what assistive technology you use.

Atodiad Dadansoddol: Dyraniadau am ddim ar gyfer sectorau CBAM

Request an accessible format.
If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email [email protected]. Please tell us what format you need. It will help us if you say what assistive technology you use.

Ways to respond

or

Email to:

[email protected]

Write to:

Emissions Trading
Department for Energy Security and Net Zero
3rd Floor
3-8 Whitehall Place
London
SW1A 2EG

Updates to this page

Published 16 December 2024

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