Britain proposes domestic emissions trading scheme from Jan 1

(Reuters, 14 Dec 2020) New White Paper on Energy also includes £1 billion for carbon capture and storage, and £240 million pounds for hydrogen production.

The British government said on Monday it will establish a domestic emissions trading scheme (UK ETS) from Jan. 1 to replace the current EU regime, as it presented its long-awaited white paper on energy policy.

Britain exits the EU ETS at the end of the Brexit transition period and had previously said it may introduce either a domestic ETS or a carbon tax.

"It will be the world's first net-zero carbon cap and trade market, and a crucial step towards achieving the UK's target for net-zero carbon emissions by 2050," the government said.

It said the scheme would be more ambitious than the EU system it replaces, reducing the cap on emissions allowed within the system by 5% from day one, and may link to other international schemes in future.

ETS schemes typically force power plants, industry and in the EU's case, also airlines, to buy permits when they emit planet-warming greenhouse gases.

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Reuters, 14 Dec 2020: Britain proposes domestic emissions trading scheme from Jan 1