The future of UK carbon pricing

A joint consultation of the UK Government, the Scottish Government, the Welsh Government and the Department of Agriculture, Environment and Rural Affairs in Northern Ireland
02 May 2019

In this consultation document, the UK Government and the Devolved Administrations are seeking views on whether the proposals are appropriate, proportionate and workable for participants. The governments are also seeking views on what the likely impacts of these proposals would be, based on our appraisal in Annex A. The proposals, and the readers' feedback on them, will enable the UK Government and the Devolved Administrations to develop informed legislation. The readers' views may also inform discussions with the EU on a linked UK emissions trading system (UK ETS).
In the absence of Northern Ireland Ministers, any future policy decisions to be made in respect of Northern Ireland may be taken by a senior officer of the Department of Agriculture, Environment and Rural Affairs in Northern Ireland, in accordance with the Northern Ireland (Executive Formation and Exercise of Functions) Act 2018 and the guidance published by the Secretary of State under section 3 of that Act.
Separate to this consultation, the UK Government and Devolved Administrations will be writing to the Committee on Climate Change (CCC) to request advice pursuant to s48(1) and s48(2) of the Climate Change Act 2008 (CCA), on establishing both a standalone UK ETS and a UK ETS linked to the EU ETS.

  • Chapter 1 sets out the main design proposals for a UK ETS (covering both a linked and a standalone UK ETS.)
  • Chapter 2 sets out proposals for how a UK ETS would operate together with some improvements – compatible with our preferred outcome of establishing a linked UK ETS – which we plan to introduce to the operation of the system to reduce burdens on business.
  • Chapter 3 sets out proposals for how the UK ETS would apply to the aviation sector.
  • Chapter 4 sets out how the governments propose to fulfil their legal obligations as a current member of the EU ETS regarding transposition of the Phase IV revisions to the EU ETS and legislate for further improvements to the implementation of the EU ETS in the UK. Many of these changes would also be applied as part of a UK ETS (linked or standalone).
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