UK Emissions Trading Scheme

(asked on 16th December 2021) - View Source

Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to the decision of 14 December 2021 by the UK ETS Authority not to intervene in the UK Emissions Trading Scheme after the cost containment mechanism was triggered, what assessment he has made of the compatibility of that decision with the Government's policy on support for industry in an energy transition to a low carbon economy; and what the criteria are for intervention by the UK ETS Authority to be approved.


Answered by
Greg Hands Portrait
Greg Hands
Minister of State (Department for Business and Trade)
This question was answered on 11th January 2022

The UK ETS Authority determined that a decision to not intervene on this occasion would uphold the objectives of the UK ETS as a market-based approach to reducing emissions and incentivising participants to find the most cost-effective solutions to decarbonise. The Government has set up multiple funding streams to support industry’s transition to net zero, including the Industrial Energy Transformation Fund worth £315 million and £1 billion set aside for the Carbon Capture, Utilisation and Storage Fund.

Should the CCM be triggered again, the UK ETS Authority will consider up to date evidence from the market that enables a decision to be taken based on the most relevant factors affecting UK ETS allowance prices at that time.

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