UK Emissions Trading Scheme (UK ETS)
The UK's cap-and-trade system for greenhouse gas emissions, covering power, industry, and aviation sectors following the UK's withdrawal from the EU ETS.
Foresight tracks UK Emissions Trading Scheme (UK ETS) developments and surfaces the alerts most likely to matter before they turn into missed deadlines, recalls, or escalation work.
Current activity
Intensifying
200% above the prior 8-week baseline
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Last updated
10 April 2026, 16:41
Latest UK Emissions Trading Scheme (UK ETS) alerts
The most recent regulatory and guidance signals tracked by Foresight
UK ETS Guidance Updates Auction Reserve Price to £28
From April 2026, UK ETS markets guidance confirms that the auction reserve price has been raised from £22 to £28 following new auctioning regulations. This locks in a higher, inflation-indexed carbon price floor for UK ETS auctions, increasing minimum cost exposure for covered emitters and signalling stronger long-term price support.
United KingdomUK Extends Emissions Trading Scheme to Domestic Maritime Activities From July 2026
The UK is extending its Emissions Trading Scheme to cover large domestic maritime activities from July 2026, mandating the monitoring and reporting of greenhouse gas emissions. This creates new carbon-pricing risks and compliance burdens for shipping operators, who must now integrate emissions costs into their operational planning and financial strategies.
United KingdomUK ETS Authority Consults on Treatment of Sustainable Aviation Fuel
The UK ETS Authority is consulting on the future regulatory treatment of Sustainable Aviation Fuel including eligibility and emissions-rating models through June 2026. Proposed shifts from zero-rating to lifecycle emissions accounting will fundamentally alter carbon allowance obligations and long-term fuel procurement strategies for the aviation sector.
United KingdomUK Department for Transport Publishes Jet Zero Taskforce 2025 Annual Report
The UK government has released its first Jet Zero Taskforce annual report, confirming the implementation timeline for sustainable aviation fuel mandates and the revenue certainty mechanism through 2026. Companies must align long-term procurement and investment strategies with escalating blending targets while preparing for the integration of carbon removals and hydrogen into the regulatory landscape.
United KingdomUK ETS: Stage 2 Free Allocation Guidance Published and FAR Documents Updated
The UK government has released Stage 2 guidance for UK ETS free allocation applications, opening the mandatory data submission window from April to June 2026. Operators must ensure rigorous data verification during this period to secure free emission allowances for 2027–2030 and mitigate carbon cost exposure.
United KingdomUK ETS Authority and OPRED Launch Free Allocation Application Stage 2 Window and Webinars
UK ETS installation operators must complete Stage 2 free allocation applications by June 2026 to maintain eligibility for the 2027–2030 period. Failure to meet this deadline will forfeit free carbon allowances, leading to significantly higher compliance costs and increased financial exposure to carbon markets.
United KingdomUK Government Publishes Steel Strategy and Confirms New Trade and Carbon Measures for Steel Sector
The UK government has launched a comprehensive steel strategy confirming new trade protections from July 2026 and a Carbon Border Adjustment Mechanism starting January 2027. Businesses should prepare for increased import costs and a strategic shift toward low-carbon procurement as trade barriers and carbon pricing tighten around steel supply chains.
United KingdomUK Chemical Industries Association Urges Government Action On Energy Costs, UK ETS And UK REACH
The UK Chemical Industries Association has demanded urgent government intervention on energy costs, carbon taxation, and UK REACH registration to prevent a systemic collapse of the domestic chemicals sector. This signals intensified pressure for a Swiss-style regulatory model and enhanced carbon leakage protections, potentially reshaping long-term compliance costs and supply chain resilience for UK-based operations.
United KingdomUK Environmental Audit Committee Issues Seventh Carbon Budget Report; CIA Backs Measures on Carbon Leakage and Electricity Costs
The UK Environmental Audit Committee has recommended a 535 MtCO2e limit for the Seventh Carbon Budget (2038–2042), with legislation required by June 2026. This signals a shift toward complex industrial decarbonization that will require businesses to align long-term investment with evolving carbon pricing, leakage protections, and energy infrastructure delivery.
United KingdomUK Government Updates UN/LOCODE List for UK ETS Offshore Installations
The UK government has updated the location codes for offshore installations to support the upcoming extension of the Emissions Trading Scheme to the maritime sector. Operators should verify their port-of-call mapping against this revised dataset to ensure accurate emissions reporting and compliance readiness before the new rules take effect.
United KingdomUK ETS Authority Opens Voluntary Early Onboarding for Maritime Operators
The UK government has launched voluntary early onboarding for maritime operators ahead of the formal expansion of the UK Emissions Trading Scheme to the shipping sector in July 2026. Affected businesses should utilize this window to establish monitoring plans and reporting accounts to ensure operational readiness for upcoming carbon pricing on domestic voyages.
United KingdomUK Government States UK ETS Maritime Revenues Are Not Ringfenced In Lords Q&A
The UK Government has confirmed that revenues from the maritime sector's inclusion in the UK Emissions Trading Scheme will not be ringfenced for industry-specific decarbonization. This signals a continued divergence from the EU approach, meaning maritime operators face rising carbon costs without guaranteed sector-specific reinvestment to support their transition.
United KingdomUK Revokes Retained Merchant Shipping CO2 MRV Legislation
The UK has revoked retained EU maritime CO2 monitoring and reporting regulations effective April 3, 2026. This action streamlines compliance by removing redundant obligations ahead of the maritime sector's integration into the UK Emissions Trading Scheme in July 2026.
United KingdomUK European Affairs Committee Opens Call for Evidence into Dynamic Alignment with EU Law
The UK House of Lords has launched an inquiry into dynamic alignment with EU law ahead of a planned 2026 legislative reset of UK-EU relations. This signals a strategic shift toward regulatory convergence where EU policy developments will increasingly dictate the trajectory of UK compliance and market access requirements.
United KingdomUK ETS Authority Opens Consultation On Cross-Boundary CCS Pipeline Regulation
The UK ETS Authority has proposed streamlining permitting for cross-boundary Carbon Capture and Storage pipelines to simplify regulatory compliance. This shift signals a move toward reducing administrative friction and operational costs for large-scale decarbonization infrastructure projects.
United KingdomUK Adopts Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2026
The UK has formally aligned its Emissions Trading Scheme with the forthcoming Carbon Border Adjustment Mechanism for the 2027–2030 allocation period. Affected industrial operators must identify specific sub-installations by June 2026 to secure allocations and prepare for the phased reduction of free carbon allowances.
United KingdomUnited Kingdom Raises UK ETS Auction Reserve Price And Introduces Annual GDP Deflator Uplift
The UK will raise the Emissions Trading Scheme auction reserve price to £28 in April 2026 and introduce an automatic annual inflation-linked uplift starting in 2027. This move establishes a higher permanent floor for carbon pricing, signaling a long-term policy shift toward increased minimum financial liabilities for industrial emitters.
United KingdomUK Chemical Industries Association Urges “Net Zero Cap” For UK ETS Removals
The UK Chemical Industries Association is advocating for a net zero cap in the UK Emissions Trading Scheme to allow greenhouse gas removal allowances to be issued above existing limits. This industry push signals growing pressure on the government to mitigate rising carbon costs and prevent industrial leakage as the scheme moves toward integrating removals by 2029.
United KingdomUK Government To Review Maritime Element Of UK Emissions Trading Scheme In 2028
The UK government has confirmed a 2028 review of the maritime sector's inclusion in the UK Emissions Trading Scheme to reassess regional and economic impacts. Maritime operators should monitor initial implementation costs closely as this review may lead to refined compliance obligations or distributional adjustments.
United KingdomUK (Environment Agency) Updates UK ETS Installation Compliance Guidance
The UK government has updated compliance guidance for the Emissions Trading Scheme, introducing new reporting procedures and stricter enforcement protocols for allowance surrenders. Operators must prioritize alignment with the updated reporting service and prepare for the 2027–2030 free allocation application window opening in April 2026.
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