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Julie James, Minister for Climate Change

First published:
28 July 2021
Last updated:

The UK Emissions Trading Scheme (UK ETS) was established in law in 2020, with the Greenhouse Gas Emissions Trading Scheme Order 2020 (GGETS Order 2020) introducing the majority of legal provisions under the powers granted by the Climate Change Act 2008 (CCA 2008). Amendments to the GGETS Order 2020 were subsequently made at the end of 2020 to enable the UK ETS to operate from 1 January 2021.

The legislation underpinning UK ETS is being delivered incrementally, through a series of statutory instruments. The timing and order of this series has been designed to ensure that specific legal provisions are introduced as they become operationally necessary. All legislation required to establish the scheme was made in 2020. There are, however, outstanding legal provisions required, which, whilst not essential for the establishment of the UK ETS on the 1st January 2021, are considered as necessary for operation of the scheme.

On 28 July, the UK ETS Authority comprising the four Governments of the UK, will publish a consultation and two separate draft statutory instruments to address a number of technical and operational issues identified during the development and amendment of the GGETS Order 2020.

The statutory instruments are expected to be laid in November as Orders in Council.

The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2021 is expected to be introduced under the negative procedure, following Privy Council.

The Greenhouse Gas Emissions Trading Scheme (Amendment) (No.2) Order 2021 will be introduced under the draft affirmative procedure with introduction also expected in November 2020, prior to submission to Privy Council.

Both Orders will make amendments to the existing Greenhouse Gas Emissions Trading Scheme Order 2020.

The UK ETS remains an important policy in this Government’s pursuit of decarbonisation. Following the summer recess I expect to issue a further statement setting out initial options to develop the UK ETS further, aimed at delivering a more impactful scheme.

This statement is being issued during recess in order to keep members informed. Should members wish me to make a further statement or to answer questions on this when the Senedd returns I would be happy to do so.