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Further information required on the UK Emissions Trading System (ETS)

7 October 2020

The Common Frameworks Scrutiny Committee has written to the Rt Hon Kwasi Kwarteng MP to confirm its intention to scrutinise the provisional framework on the UK Emissions Trading System (ETS). The Committee also seeks further information on a number of issues to better inform its scrutiny.

Background

The UK Emissions Trading System (ETS) is designed to replace the EU ETS at the end of the transition period, following the UK’s withdrawal from the EU. The UK’s approach has been agreed by the UK and devolved governments, and is broadly similar to the EU system.

However, there are a number of areas where the Committee would like further information before receiving the provisional framework. In its letter, the Committee asks:

  • How the governance arrangements will work and what role Parliament will have in future scrutiny
  • The circumstances under which a carbon emissions tax would be used as a “fall-back option”
  • The relationship between the UK ETS and EU ETS, particularly in Northern Ireland
  • The consultation conducted with relevant stakeholders across the UK

Further information