UK Emissions Trading Scheme and Carbon Price Support: apply for compensation
How to apply for compensation for the indirect costs of the UK Emissions Trading Scheme (UK ETS) and the Carbon Price Support (CPS) mechanism.
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Details
The UK Emissions Trading Scheme (UK ETS) and Carbon Price Support (CPS) mechanism are designed to reduce emissions.
The government recognises that the costs of these schemes have a particular impact on some Energy Intensive Industries (EIIs). You may be able to apply for compensation for the indirect costs of the UK ETS and CPS.
How to apply for compensation
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Read the guidance document. This includes information on who can apply, how to apply, the data required and the formula used to calculate compensation.
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Complete an application form, declaration form and the compensation calculation spreadsheets.
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Send your completed documents to [email protected].
After you have applied
Your application will be assessed by the Department for Business and Trade (DBT). You will receive a letter telling you if your application has been approved.
If your application is approved, you will be compensated from the start of the month when your application is received.
Compensation claims cannot be backdated.
Updates to this page
Published 24 May 2021Last updated 4 October 2024 + show all updates
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Updated guidance to include UK ETS CPS benchmarks in Annex C, and supporting language.
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In 'Compensation for the indirect costs of the UK ETS and the CPS mechanism: guidance for applicants': 2 instances of ‘0.4344 tCO2/MWh in 2023’ changed to ‘0.42 tCO2/MWh in 2024’ and 8 instances of ‘0.4344 tCO2/MWh’ changed to ‘0.42 tCO2/MWh’.
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ETS price and indirect carbon cost updated. Attachments 'Data for UK ETS and CPS eligibility and compensation calculation form (B03 and B04 forms)' and 'Quarterly declaration for businesses receiving compensation from a proportion of the indirect costs of the UK ETS and CPS mechanism' updated to April 2024 versions. References to BEIS changed to DBT.
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UK ETS and CPS compensation application forms (Word and Excel) updated.
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Guidance and forms revised in line with publication of government response to consultation.
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First published.