The UK Emissions Trading Scheme (UK ETS) replaced the UK’s participation in the EU’s ETS on 1 January 2021 following the end of the Brexit transition period.
The UK ETS applies to energy intensive industries and aviation by controlling emissions from greenhouse gases.
It covers activities involving combustion of fuels in installations with a total rated thermal input exceeding 20MW (except in installations for the incineration of hazardous or municipal waste).
Electricity generators in Northern Ireland do not participate in the UK ETS, as they have remained in the EU ETS due to the Ireland/Northern Ireland Protocol to protect the Single Electricity Market (SEM).
Consequently, NI has a dual system of carbon emission trading – one for electricity generators who have remained in the EU ETS and one for all other non-generators who participate in the UK ETS.
This consultation paper only affects installations that are covered by the new UK ETS.
More information about this consultation, which closes on 2 April 2021, and how to take part is available on the Department of Agriculture, Environment and Rural Affairs website.
