Biomethane: UK Emissions Trading Scheme
The question
To ask the Secretary of State for Energy Security and Net Zero, what assessment his Department has made of the potential merits of treating biomethane in the same way as (a) other renewable fuels and (b) renewable electricity under the UK Emissions Trading Scheme.
Answered by Sarah Jones
The Government recognises biomethane as a practical and cost-effective way of contributing to net zero greenhouse gas emissions. The UK Emissions Trading Scheme (ETS) applies a zero emissions factor to combustion of biomethane where supplied directly to ETS installations. Where biomethane is injected into the gas grid, there is not currently a mechanism to ensure biomethane is accounted for separately.
The ETS prices emissions from electricity generation but not from electricity use as emissions are only priced at the point of combustion.
As outlined in the future policy framework for biomethane production call for evidence, the Government is working with the ETS Authority to consider whether the ETS could account for biomethane injected into the gas grid and will provide an update on this in due course.
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