UK to replace EU carbon trading system
The Government has drafted proposals for a new nationwide carbon emissions trading system (ETS) which would replace the current EU system and assist with the UK’s net carbon zero 2050 target.
Published by the Department for Business, Energy and Industrial Strategy (BEIS), the system will function in a similar way to the EU ETS but will commit to reducing emissions caps for carbon-intensive industries by a further 5 per cent.
The new system is set to come into effect when the transition period for the UK leaving the EU ends, after 31 December 2020.
Energy Minister Kwasi Kwarteng said: “The UK is a world-leader in tackling climate change, and thanks to the opportunities arising as we exit the transition period, we are now able to go even further, faster.
“This new scheme will provide a smooth transition for businesses while reducing our contribution to climate change, crucial as we work towards net zero emissions by 2050.”