The UK Emissions Trading Scheme (ETS) Authority has announced a significant reduction in the number of carbon permits to be auctioned to industry next year.
Next year’s auction calendar will restrict the quantity of carbon permits available to companies to 69 million, a decrease of 12.4% compared to 2023.
Looking ahead, by 2027, the allocation is projected to drop by approximately 45% from the 2023 levels to 44 million, eventually decreasing further to 24 million by 2030.
This move is anticipated to provide essential support to energy-intensive industries in their transition away from fossil fuels for electricity generation.
Industries such as manufacturing, power generation and aviation are required to purchase allowances to offset each unit of carbon they emit.
With fewer permits available, these sectors will face added pressure to implement emissions-reduction measures.
In a joint statement, ministers from the UK Emissions Trading Scheme Authority, including Lord Callanan, Julie James, Màiri McAllan, and Exchequer Secretary Gareth Davies, expressed their commitment to supporting industries in their transition towards cleaner energy sources and enhanced efficiency measures.
