8 June 2020
The UK Government has confirmed that it intends to establish a UK emissions trading system ("ETS") from 1 January 2021.
The ETS could operate either as a standalone system or be linked to other systems such as the EU ETS. The design of the system has borrowed heavily from the EU ETS but it is more ambitious in its climate targets, adopting an initial emissions cap that will be 5% lower than the UK's notional share of the EU ETS cap for Phase IV of the EU ETS. This briefing sets out the key points to note from the proposal.