Stricter limitations on industrial, power, and aviation emissions will take effect in 2024, according to a package of amendments released by the UK Emissions Trading Scheme Authority.
Since 2021, the UK ETS has imposed emissions limits on the aviation, power, and energy-intensive industries.
The framework encourages enterprises to invest in cleaner technology in order to minimize their carbon impact and improve energy security.
These industries will be expected to gradually reduce their emissions in order to meet net zero targets beginning next year, highlighting the importance of long-term decarbonization activities.
To ease this transition, the emissions cap will be set at the highest level recommended, giving industries flexibility.
The Department for Energy Security and Net Zero announced that more allowances would be brought into the market between 2024 and 2027, while the current allotment of free allowances for industries will be guaranteed until 2026 to protect them from international pressures.
The reforms include broadening the emissions cap to cover domestic maritime transportation and waste management.
The transition towards decarbonisation will be gradual, allowing industries to adapt and invest in long term strategies while maintaining flexibility.
