Monday 3 July 2023

UK tightens emissions limits for power, industry and aviation from 2024

UK tightens emissions limits for power, industry and aviation from 2024

The UK Emissions Trading System Authority (UK ETS) has announced a package of reforms to impose tighter emissions limits on the power sector, energy-intensive industries and aviation starting in 2024.

The UK ETS has been enforcing emissions limits on aviation, power and energy intensive industries since 2021.

The framework encourages a shift away from fossil fuels and urges industries to invest in cleaner technologies to reduce their carbon footprint and enhance energy security.

From the upcoming year, these sectors will be required to steadily decrease their emissions in line with the net zero objectives, signalling the significance of long term decarbonisation efforts.

To facilitate this transition, the emissions cap will be set at the uppermost level proposed, providing flexibility for industries.

Additional allowances will be introduced to the market between 2024 and 2027, while the current allocation of free allowances for industries will be guaranteed until 2026 to shield them from international pressures, the Department for Energy Security and Net Zero has announced.

The reforms include expanding the emissions cap to encompass domestic maritime transport and waste sectors.

The transition towards decarbonisation will be gradual, allowing industries to adapt and invest in long term decarbonisation strategies while maintaining flexibility.

In a joint statement, UK ETS Authority Ministers, including Lord Callanan, Julie James MS, Màiri McAllan MSP and Gareth Davies MP said: "With the recent rises in energy prices, it is more important than ever that we accelerate the transition away from costly fossil fuels, towards greener and more secure energy.

"The decisions taken here will not only put us on the path to net zero, but will also support crucial industries on their path to long term sustainability."

Written by

Bruna Pinhoni

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