UK Emissions Trading Scheme
The question
To ask the Secretary of State for Energy Security and Net Zero, pursuant to the Answer of 2 March 2026 to Question 115442, what his evidential basis is that linking the UK Emissions Trading Scheme with the EU Emissions Trading Scheme will minimise administrative burdens for operators and support economic growth and decarbonisation.
Answered by Chris McDonald
Linking the UK and EU emissions trading schemes is expected to bring significant economic benefits to the UK, including a cheaper path towards decarbonisation by providing businesses with access to a larger, more stable and liquid carbon market which will help support investment in low-carbon technologies.
Linking would also lower costs and lower barriers to trade for UK businesses by creating the conditions for mutual CBAM exemptions.
Consultation responses from maritime stakeholders have largely supported alignment of requirements across the two schemes to reduce the administrative burden for operators participating in both schemes.
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