- It also creates carbon permits for those emissions and companies must buy one for each tonne of carbon dioxide (CO2) they emit.
- We are open to the possibility of linking the UK ETS internationally and will continue to work collaboratively with other jurisdictions the document said.
- In the meantime, amendments to the draft EU Maritime Emissions Trading System (ETS) proposal could impact the apportionment of ETS costs and liabilities in the maritime sector, argue WFW London Partner Nick Walker and Senior Associate Valentina Keys.
Shipping has so far been excluded from both the UK and EU schemes, and the European Union is attempting to charge shipping for its emissions despite business opposition as reported by Safety4Sea.
Net-zero emissions
According to Reuters, the Department for Business, Energy and Industrial Strategy notes in a consultation document that “we propose to include domestic maritime within the UK emissions trading scheme by the mid-2020s and will aim to provide more details on the timing for implementation later this year.”
The government would set a steadily falling cap on how many emissions a sector, or group of sectors, can produce under the ETS. It also creates carbon permits for those emissions, which businesses must purchase for every tonne of CO2 they emit.
Furthermore, the consultation stated that starting in 2024, the ETS quota will be adjusted to coincide with the country’s goal of reaching net-zero emissions by 2050.
Shared carbon price
Now, many participants of the scheme have called on the government to link it to the European scheme, which would allow permits to be traded between them to create one shared carbon price and boost liquidity.
“We are open to the possibility of linking the UK ETS internationally and will continue to work collaboratively with other jurisdictions,” the document said.
In the meantime, amendments to the draft EU Maritime Emissions Trading System (ETS) proposal could impact the apportionment of ETS costs and liabilities in the maritime sector, argue WFW London Partner Nick Walker and Senior Associate Valentina Keys.
On 14 January 2022 the European Parliament’s Rapporteur, MEP Peter Liese, published his draft report on a proposal to revise the Emissions Trading System (ETS) Directive which forms part of the ‘Fit for 55’ package of climate and energy reforms published on 14 July 2021.
Further amendments are expected to be submitted in response to ongoing feedback from businesses in the coming weeks.
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Source: Safety4Sea
