Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the ability of (a) ceramics manufacturers and (b) other energy intensive industries to meet the UK Emissions Trading Scheme.

UK Emissions Trading Scheme (UK ETS) participants, including those in energy intensive industries such as the ceramics sector, are provided with free allocations to mitigate the risk of carbon leakage and incentivise emissions reduction.

The UK ETS Authority is reviewing Free Allocation policy to ensure it supports sectors most at risk of carbon leakage and has guaranteed current free allocation levels until 2027.

The Authority commissioned an independent 2-stage evaluation of the scheme to provide evidence of its effectiveness, early outcomes and long-term impacts. The first findings of the evaluation, which include a preliminary assessment of carbon leakage and emissions reduction across the UK ETS, were published in December 2023.