The UK Emissions Shopping for and promoting Scheme (ETS) Authority is consulting on growing the ETS to include the maritime sector and recognise non-pipeline transport methods for carbon dioxide, just like supply, road or rail, for shifting captured carbon into geological storage.
In an announcement printed on 28 November, the authority moreover acknowledged it is perhaps making changes to remove additional free allowances from firms who cease train of their closing yr of operation to be sure that their free allocation is proportionate to their train ranges.
Launched in 2021, the UK ETS targets to decarbonise the UK’s aviation, power and enterprise sectors by setting a limit on emissions, with allowances which may be traded, making a carbon value that incentivises firms to chop again their emissions.
Along with the maritime sector contained in the ETS would suggest that firms with ships working residence voyages would want to purchase allowances for every tonne of carbon they emit, ensuring that the value of fuels utilized by the sector additional exactly shows their environmental impression.
Recognising non-pipeline transport methods would make sure that operators transporting carbon dioxide for storage can deduct the amount they ship to storage from their reportable emissions, providing monetary help for industrial web sites with out entry to pipelines.
In a joint assertion, UK ETS Authority ministers acknowledged the proposals had been about ‘incentivising’ enterprise to lower emissions as a result of the UK transitions to a ‘greener future’.
‘Rising the UK ETS to include maritime and recognising non-pipeline transport for carbon seize and storage will encourage funding into clear utilized sciences, an necessary progress enterprise throughout the UK,’ they added.
Consultations on the two proposals will shut on 23 January 2025 and, if agreed, the proposed changes will come into influence from 2026.