The UK government has confirmed an extension on the UK Emissions Trading Scheme. The extension, lasting until 2050, is expected to provide more long-term certainty for companies to invest into renewable energy. In a joint statement, UK Emissions Trading Scheme Authority ministers said,
These plans form the next step in developing the scheme so it can continue to enable the transition to net zero for industries across the UK alongside lasting economic growth.
The announcement is a part of a response to MP Chris Skidmore’s Independent review of Net Zero. Alongside the extension, the Government has opened consultations to ask for views on improvements to the scheme. They wish to hear from those in the aviation, power generation sectors and beyond on how to better support businesses in the net zero transition.
This comes after concern over the decline in UK carbon prices, with the lowest price this year reaching between £35 and £40 per tonne in September. Companies under the scheme, which will include EfW as of 2028, have allowances for every unit of carbon they emit. These allowances can be traded which generates a price that is expected to encourage investment into cleaner or more renewable energy sources. The decline in price sparked fears that companies were buying more carbon allowances rather than being encouraged to decarbonise.
It is hoped that by extending the scheme and opening consultation will see more investment, as it will provide another incentive to invest in renewable energy - certainty. The UK ETS Authority minister said:
The UK Emissions Trading Scheme is a cornerstone of our climate policy. Continuing its success means giving industries confidence to invest in decarbonisation.
Jakob Sahlen, Head of Environment & Sustainability at SYSAV, and Chris Jonas, Director of Tolvik, will be discussing the Emissions Trading Scheme at this years Energy from Waste Conference. Tickets are available now at an exclusive discounted rate for EfW Net members. Click here to find out more.