DESNZ publishes 2024 UK ETS performance report
The Department for Energy Security and Net Zero (DESNZ) has published the 2024 performance report for the UK Emissions Trading Scheme (UK ETS), marking the scheme’s fourth year of operation. The report provides a high-level overview of UK ETS infrastructure, participant data for installations and aviation, market oversight and compliance data. It also covers the functioning of the carbon market, including the supply and free allocation of UK Allowances (UKAs), auction results and the implementation of the Cost Containment Mechanism (CCM). Total recorded emissions for 2024 were 85,634,344 tCO₂e, representing an 11.5% decrease from 96,750,817 tCO₂e in 2023, driven by lower emissions across the power, industrial and fuel supply sectors. All 25 auctions held for the 2024 scheme year cleared successfully, with 68,964,000 UKAs auctioned, generating £2.56bn in revenue. The scheme maintained high compliance rates, with 99.99% for installations and 99.81% for aircraft operators since its launch in 2021. The CCM was not triggered during 2024. The UK ETS Authority is currently conducting the second phase of its monitoring and evaluation programme, which will assess the scheme’s long-term impacts, with findings due to be published in 2026.