The UK Emissions Trading Scheme (ETS) has announced that the amount of UK carbon permits to be auctioned to industry in 2024 will fall by 12.4% compared to 2023, in order to be aligned with the UK government’s plans for net zero emissions. The 2024 auction calendar will limit the number of carbon permits companies can buy to 69 million. By 2027, the amount should fall by around 45% from 2023 to 44 million and then fall to 24 million by 2030.
Companies in sectors such as manufacturing, power and aviation are required to buy allowances to offset the CO2 they emit. With fewer permits available, enterprises in these sectors will need to take further steps to cut their emissions.
Introduced in 2021, the UK scheme replaced the UK's participation in the European Union's ETS following Brexit. The UK plans to reach net zero emissions by 2050.
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