The UK Government – in partnership with the Scottish Government, Welsh Government and NI Executive – have established the UK ETS and are now consulting on its development.

The core of the consultation is a review of the UK ETS’s cap to ensure it fully supports world-leading targets on carbon emissions, including net zero by 2050 and encourages the continued transition away from fossil fuels. The scheme is intended to be developed in a way that works for the UK’s climate goals and supports business in the transition.

The consultation also continues the review into free allocation policy for industrial sectors, which protects sectors at risk of carbon leakage. Recognising the need for certainty in the near term, we are guaranteeing current levels of free allocation until 2026, subject to activity level changes. This will support industry in the transition to net zero in the context of high global energy prices while incentivising long term decarbonisation.

The consultation can be found at the following link: consultation page on Please send responses to and for general enquiries contact

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