Future of the EU Emissions Trading Scheme

The EU ETS is a key component of the UK policy framework to effectively mitigate climate change. The Government is working to build a UK and EU consensus on emissions trading and the actions necessary to strengthen the scheme and provide firms with greater long-term carbon market certainty. For the future, the UK believes that the EU ETS should:

  • set predictable limits on emissions, which tighten over time;
  • move towards greater harmonisation of the way in which Member States operate the scheme, particularly in areas such as allocation, to tackle concerns about competitiveness impacts;
  • consider expanding the scope of the scheme to cover new sources of emissions; and
  • form the hub of a global carbon market.

Further details about the future of the EU ETS can be found on the Defra: The Future Development of the EU ETS webpage.

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