UK updates delayed ETS plan, while utilities rely on EU

UK carbon market delays mean domestic utilities are calling on the EU ETS to fulfil their requirements

Progress has been made on the delayed UK Emissions Trading System (ETS), in guidance issued by the government yesterday, amid reports utilities are being forced to rely on the EU system to hedge their carbon emissions. The guidance confirmed the UK system will closely replicate the EU ETS in terms of the way it functions, as expected by British companies, which have been using the EU system for more than a decade. “The initial approach to free allocation in the UK ETS will be similar to the EU’s proposed approach for Phase IV of the EU ETS,” states the Department of Business. Energy & Industrial Strategy (BEIS) guidance. “This will ensure a continuation of emissions trading smooth transi