DESNZ consults on UK ETS expansion and updates free allocation rules
The Department for Energy Security and Net Zero (DESNZ) has launched consultations on expanding the UK Emissions Trading Scheme (ETS) to include maritime sector emissions from 2026 and recognise non-pipeline transport for carbon capture and storage. DESNZ has also published an initial response to the free allocation review, confirming changes to rules for participants ceasing operations, to be implemented in 2025. The changes include an exemption for sites ceasing activity to decarbonise, supporting the UK ETS's objective of incentivising carbon-efficient production across industrial sectors.