Biomethane: UK Emissions Trading Scheme
The question
To ask the Secretary of State for Energy Security and Net Zero, whether his Department has made an assessment of the potential impact of treating biomethane in the same way as fossil gases under the UK Emissions trading scheme on (a) the anaerobic digestion and biogas sector and (b) the wider economy.
Answered by Kerry McCarthy
Biomethane can play an important role in reducing reliance on imported gas, increasing our country’s energy security, and helping to deliver net zero.
The UK Emissions Trading Scheme (ETS) applies a zero emissions factor to biomethane combustion where it is supplied directly to ETS installations. Where biomethane is injected into the gas grid, there is not currently a mechanism to account for the use of biomethane.
The Department is considering stakeholder feedback from the 2024 Call for Evidence on the impacts of this to inform the next steps. The Department will provide an update in due course.
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