Sunday, October 1, 2023
HomeEnvironmentUK to tighten emissions trading scheme from 2024

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

UK to tighten emissions trading scheme from 2024

The UK emissions trading scheme (ETS) will be reformed next year to tighten limits on carbon dioxide pollution and expanded in 2026 to include new sectors, the relevant authority said on Monday.

Introduced in 2021 for an initial phase lasting until 2030, it replaced the UK’s participation in the European Union’s ETS.

Designed to incentivise industry to cut emissions, the scheme forces participants from energy intensive industries, the power generation sector and aviation to buy permits to release CO2.

Building on the first years of trading and a consultation held last year, the UK Emissions Trading System Authority has decided that industries covered by the scheme will need to bring down emissions at a faster rate to reach net zero goals.

This will lower the so called net-zero cap for Phase 1 to the top of the consulted range of 887-936 million allowances, the authority said.

The current cap is 1,365 million, according to the consultation papers.

At the same time, the authorities will release an addition 53.5 million allowances from reserves between 2024 and 2027 to ensure that there is no sudden drop in allowance supply between 2023 and 2024, it said.

The level of freely allocated allowances which industry receives to shield it from international competition in markets with no or lower carbon pricing has also been guaranteed until 2026, the authority said.

It also announced that the UK ETS will be extended to cover domestic maritime transport from 2026 and to cover waste from 2028, while a phased removal of free carbon allowances for the aviation industry will be rolled out in 2026.

[reuters]

Related Posts

Video

Finance & Economy
Shipping News
Ports

Sphinx Investment Corp Increases Stake in OceanPal

On September 28, 2023, an OceanPal SEC filing revealed that Sphinx Investment Corp. had raised its ownership in OceanPal, now holding a substantial stake...

Star Bulk Announces the Repurchase of 10 Million of Its Common Shares

Star Bulk announced that it entered into a Repurchase Agreement (with OCM XL Holdings, LP, a limited partnership incorporated in the Cayman Islands, pursuant...

Trafigura announces executive leadership changes

Trafigura Group Pte Ltd. has announced an evolution of its executive team to further strengthen leadership and focus across its global activities during a...

Woori, HMM, KOBC to buy Polaris in prospective $448 mln deal – report

Polaris Shipping Co. is poised to sell its entire stake at around 600 billion won ($447.5 million) to Woori Private Equity Asset Management Co....

Pyxis Tankers Announces Closing of Ultramax JV Investment

Pyxis Tankers, an international shipping company, reported that on September 14, 2023, the Company closed on its previously announced newly formed drybulk joint venture...

Baltic index snaps 4-day winning streak as capesize rates slip

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Baltic index scales 11-month peak on strong capesize rates

The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry...

Baltic index scales over 9-month high on capesize surge

The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry...

Baltic index rises to over 4-month high on stronger capesize rates

The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry...

Houston-Japan VLGC freight rates reach multi-year high

VLGC freight rates from Houston to Chiba, Japan, reached $245/mt Sept. 21 for the...

Piraeus Port reports strong H1 2023 results

The Piraeus Port Authority SA, which operates Greece’s biggest and busiest port, reported a 48.8-percent increase in pre-tax earnings for H1 2023 – 49.4...

Greece names Thessaloniki port operator preferred bidder for Volos port

Greece’s privatisation agency has named the operator of Thessaloniki port as the preferred bidder for acquiring a 67% stake in the port of Volos,...

Drewry: Port Throughput Index Down 2.1% in July

The Global Container Port Throughput Index fell 2.1% MoM in July 2023, with the small rises recorded in Africa and Oceania having been insufficient...

Vopak: Agreement with Infracapital on sale of Rotterdam chemical terminals

Vopak announces that it has reached an agreement with Infracapital on the sale of its three chemical terminals in Rotterdam (Botlek, TTR and Chemiehaven)...

Port Hedland Iron Ore Exports Edge Up 4% in August

Pilbara Ports Authority has delivered a total monthly throughput of 62.8 million tonnes (Mt) for August 2023, consistent with the August 2022 throughput. The Port...