Emissions Trading Scheme Misalignment

Lack of alignment between UK and EU Emissions Trading Schemes, potentially creating trade barriers and hindering climate goals.

93 items 2 sources
Strongest theme matches

Mixed across source types and ranked by classifier confidence plus text match strength.

Indicative ranking
Committee recommendation
98match
#14 - Link and keep aligned the UK and EU Emissions Trading Schemes to prevent trade barriers.
Business and Trade Committee
To prevent the UK and EU’s respective Carbon Border Adjustment Mechanism schemes from becoming barriers to trade in electricity and carbon- intensive goods, when doing so maximises export potential and reduces consumer costs, the Government should seek to link, and keep aligned, the UK Emissions Trading Scheme with the EU Emissions Trading Scheme. The Government should ensure action...
Matched on terms: emission, scheme, trading
Committee recommendation
94match
#24 - Aviation sector's carbon emissions are not fully paid for, creating artificial cheapness.
Environmental Audit Committee
The aviation sector does not fully pay for its carbon emissions, whether this is through the lack of a direct carbon tax, VAT on its fuel, or the greater benefits it receives through the Emissions Trading Scheme compared to other high emitting sectors. This makes aviation artificially cheap and provides the industry with benefits other essential sectors do...
Matched on terms: emission, scheme, trading
Committee recommendation
80match
#13 - Fifth Report - Greening imports: a UK carbon border approach
Environmental Audit Committee
We recommend that the Government: a) Set out in its response to this report: b) how it intends to work with stakeholders in the EU and UK to understand how the proposed EU CBAM, would affect the UK, including in Northern Ireland; and c) how it intends to ensure open and transparent communication on progress on its actions...
Matched on terms: emission, scheme, trading
Committee recommendation
77match
#1 - Fifth Report - Greening imports: a UK carbon border approach
Environmental Audit Committee
Effective carbon pricing is crucial to decarbonisation, but cannot be achieved without effective anti-carbon leakage policies in place. The Government’s current approach to addressing the risks of carbon leakage, including free allocation of Emissions Trading Scheme (ETS) allowances, is insufficient on its own to incentivise industrial decarbonisation effectively. A clear policy response is needed to address this; we...
Matched on terms: emission, scheme, trading
Committee recommendation
77match
#25 - Ensure aviation sector pays fair share and include Sustainable Aviation Fuels in ETS.
Environmental Audit Committee
The Government should ensure that the aviation sector pays its fair share towards mitigating its carbon emissions and the benefits it receives in comparison to other sectors. Aviation should be included in Emissions Trading Schemes and the government should include the use of Sustainable Aviation Fuels within the ETS. (Recommendation, Paragraph 112)
Matched on terms: emission, scheme, trading
Committee recommendation
69match
#4 - Twenty-Third Report - Measuring and reporting public sector greenhouse gas emissions
Public Accounts Committee
We are not convinced that departments are making effective use of the emissions data to drive decision-making. Central government and other public sector bodies need to use emissions data to decide priorities and assess the affordability of plans. While the NAO report highlighted examples of good practice, the maturity of decarbonisation plans across the public sector is variable....
Matched on terms: emission, scheme
Committee recommendation
68match
#24 - 8th Report - The Seventh Carbon Budget
Environmental Audit Committee
The Government should also set out how free allocation under the UK Emissions Trading Scheme and the forthcoming UK Carbon Border Adjustment Mechanism will interact during the transition, with a commitment to review their combined effectiveness globally once the UK Carbon Border Adjustment Mechanism is in place. (Recommendation, Paragraph 106)
Matched on terms: emission, scheme, trading
Committee recommendation
68match
#25 - 3rd Report – From a Common Understanding to Common Ground: Building a UK-EU Strategic Partnership fit...
Foreign Affairs Committee
We support the Government’s intention to act on the commitment made by its predecessor within the Trade and Cooperation Agreement to “seriously consider” linking the UK and EU emissions trading systems. An agreement to that effect would be of benefit to both sides’ climate ambitions. An agreement on Emissions Trading Systems linkage would also allow for mutual exemption...
Matched on terms: emission, trading
Committee recommendation
66match
#22 - New Drax agreement offers limited impact on emissions and lacks BECCS investment incentives.
Public Accounts Committee
There are other factors which cast doubt on whether the government has reached a good deal. The new support agreement with Drax reduces the level of allowed supply chain emissions for the fuel it burns, from 55.6 grams of CO2 per megajoule to 36.6 grams.60 While DESNZ said that this is in line with international best practice, historically...
Matched on terms: emission
Committee recommendation
66match
#18 - Legislate to formally include international aviation emissions within Carbon Budgets and Net Zero targets
Environmental Audit Committee
We reiterate the recommendation made by the Climate Change Committee, our predecessor Committee and others that the Government makes Parliamentary time available to introduce the necessary legislation to formally include international aviation emissions within Carbon Budgets and its Net Zero targets. The Government should do this within the current Parliamentary session. (Recommendation, Paragraph 80)
Matched on terms: emission
Committee recommendation
62match
#17 - International aviation emissions not formally legislated within UK Carbon Budgets
Environmental Audit Committee
Whilst the Committee understands the Government position that it includes international aviation emissions within its carbon calculations, the UK is yet to formally legislate to include international aviation emissions within the Carbon Budgets, despite it agreeing to do so previously. (Conclusion, Paragraph 79) 45
Matched on terms: emission
Committee recommendation
60match
#26 - 3rd Report – From a Common Understanding to Common Ground: Building a UK-EU Strategic Partnership fit...
Foreign Affairs Committee
We ask the Government to provide clarity at the earliest opportunity about the state of play of its engagement, if any, with the EU to agree an interim arrangement for British exports under the EU’s Carbon Border Adjustment Mechanism, while negotiations on a formal agreement to achieve linkage between the UK and EU Emissions Trading Systems are on-going....
Matched on terms: emission, trading
Committee recommendation
57match
#12 - Fifth Report - Greening imports: a UK carbon border approach
Environmental Audit Committee
The UK and EU have agreed to consider linking the UK and EU ETS systems, which would exempt UK producers from the EU’s CBAM (and vice versa), simplifying administrative processes for UK-EU trade; as linking can be a lengthy process, it is important for exploratory work to commence on this now. This may also be a welcome sign...
Matched on terms: scheme
Committee recommendation
57match
#5 - Fifth Report - Greening imports: a UK carbon border approach
Environmental Audit Committee
We recommend that the Government commence work immediately on developing a comprehensive UK carbon border approach, in order that this might be implemented during the 2020s. We recommend that this include a CBAM as part of a co-ordinated set of policies including product standards, alongside work to build consensus with trading partners, industry and consumers on the need...
Matched on terms: trading
Committee recommendation
56match
#6 - Fifth Report - Greening imports: a UK carbon border approach
Environmental Audit Committee
The UK is an open, trading economy, and trade can be a powerful lever to drive environmental outcomes. Careful design, alongside inclusive engagement with trading partners, is needed to ensure that any CBAM and wider carbon border approach are aligned with the UK’s international obligations and commitments, including the principle of common but differentiated responsibilities and respective capabilities...
Matched on terms: trading
Committee recommendation
53match
#3 - Fifth Report - Greening imports: a UK carbon border approach
Environmental Audit Committee
While net zero policies address the UK’s territorial production emissions, 43% of the UK’s consumption emissions arise from imports. The UK’s principal carbon pricing mechanism, the ETS, applies to domestic production, but no carbon price is currently applied to imports of the same products. A CBAM could address this, enabling a carbon price to be applied to consumption...
Matched on terms: emission
Committee recommendation
53match
#9 - Revise National Policy Statement for Ports to clarify port freight interface and promote modal shift
Transport Committee
The Government should revise the draft National Policy Statement for Ports to articulate more clearly how ports interface with other freight modes, ensuring that planning authorities actively consider modal shift in their decision-making. This should reflect the strategic role of ports in enabling integrated, low-emission freight networks and support the Government’s wider priorities on modal shift and achieving...
Matched on terms: emission
Committee recommendation
53match
#9 - Twenty-Third Report - Measuring and reporting public sector greenhouse gas emissions
Public Accounts Committee
The current reporting requirements for central government focus on scope 1 and scope 2 emissions; for example the gas used in boilers and electricity used across the government estate.19 The only scope 3 emissions that are captured by current mandatory reporting are those arising from business travel undertaken by government employees.20 However, scope 3 emissions can be highly...
Matched on terms: emission
Committee recommendation
53match
#6 - Twenty-Third Report - Measuring and reporting public sector greenhouse gas emissions
Public Accounts Committee
In addition to the BEIS dataset that covers the entire public sector, Defra publishes an annual progress report for the Greening Government Commitments (GGCs). Alongside the government’s other environmental measures, this shows the progress made by central government departments and their arm’s-length bodies in reducing their scope 1 and 2 emissions, as well as emissions from business travel...
Matched on terms: emission
Committee recommendation
53match
#5 - Twenty-Third Report - Measuring and reporting public sector greenhouse gas emissions
Public Accounts Committee
The public sector risks falling behind on the reporting of its emissions but could learn from developing practice in private sector and the devolved administrations. While the UK government has committed to leading by example in efforts to decarbonise, other sectors and the devolved administrations are already doing more to promote fuller reporting of emissions. Parts of the...
Matched on terms: emission
Committee recommendation
53match
#3 - Twenty-Third Report - Measuring and reporting public sector greenhouse gas emissions
Public Accounts Committee
Leadership and oversight of emissions measurement and reporting in central government is fragmented and ineffective. At present, there are at least three departments issuing guidance to central government bodies on how to measure and report emissions. However, the guidance is not consistent nor is it user-friendly as it is scattered across several different publications. For example, HM Treasury’s...
Matched on terms: emission
Committee recommendation
52match
#17 - Fifth Report - Greening imports: a UK carbon border approach
Environmental Audit Committee
Pricing the carbon element, so low-carbon products become less expensive than high-carbon ones, is a powerful lever to reduce consumption emissions, to support the development of low-carbon products and increase access to such products. Currently, high energy prices and rises in inflation are contributing to stark rises in living costs; it is important that the design of any...
Matched on terms: emission
Committee recommendation
52match
#8 - Fifth Report - Greening imports: a UK carbon border approach
Environmental Audit Committee
Our recommendations to Government on the design of the carbon border approach are as follows: a) to ensure, from the outset, that the carbon border approach is designed to adhere to the principles of common but differentiated responsibilities and respective capabilities set out in the Paris Agreement and Glasgow Climate Pact in respect of low- and middle-income country...
Matched on terms: trading
Committee recommendation
52match
#19 - 8th Report - The Seventh Carbon Budget
Environmental Audit Committee
The Seventh Carbon Budget must deliver genuine emissions reductions, not reductions achieved by exporting emissions overseas. Meeting carbon budgets through offshoring would undermine their environmental purpose 61 and the integrity of the UK’s climate framework, and risks weakening public confidence in decarbonisation by creating the appearance of progress without reducing global emissions. (Conclusion, Paragraph 101)
Matched on terms: emission
Committee recommendation
48match
#4 - Fifth Report - Greening imports: a UK carbon border approach
Environmental Audit Committee
Alongside CBAM, the UK’s carbon border approach needs to comprise a set of complementary policies, including product standards, to tackle consumption emissions beyond those covered by explicit carbon pricing, and support decarbonisation across the economy. Careful design is needed to ensure the carbon border approach is successful in achieving its environmental objectives while mitigating the risks of adverse...
Matched on terms: emission
Committee recommendation
48match
#24 - Free ETS allocations for aviation ending, SAF pricing needs to reflect carbon impact.
Environmental Audit Committee
We welcome the decision of the UK Government and devolved administrations to end the issuing of free ETS allocations to aviation with effect from the 2026–2030 allocation period. We note that the use of SAF in aviation is currently zero-rated for ETS, even though the emissions from burning SAF in flight are currently equivalent to those from burning...
Matched on terms: emission
Committee recommendation
48match
#26 - Conduct wider review of aviation taxation to ensure 'polluter pays' principle is upheld.
Environmental Audit Committee
Government should also conduct a wider review of aviation taxation to ensure that the ‘polluter pays’ principle is upheld, and the aviation industry does not receive benefits which are denied to other important industries. The aviation industry will then be incentivised to decrease emissions. (Recommendation, Paragraph 113)
Matched on terms: emission
Committee recommendation
48match
#23 - Set out detailed analysis on aviation impacts and mitigations if airport expansion proceeds.
Environmental Audit Committee
If the Government proceeds with airport expansion it should set out to the Committee in its response to this report, in-depth analysis on: • How it will ensure carbon costs will reach the level the Government expected in the Jet Zero Strategy. It should also set out a realistic timeline and a plan in the event that these...
Matched on terms: emission
Committee recommendation
48match
#21 - Government's Jet Zero Strategy insufficient to deliver Net Zero aviation objectives.
Environmental Audit Committee
The Government’s Jet Zero Strategy remains reliant on demand management measures that are as yet insufficient to deliver Net Zero objectives, especially if there is an increase in demand. The strategy relies on a far higher cost to industry to abate carbon emissions than are currently seen. It also requires significant carbon savings from the rollout of technology...
Matched on terms: emission
Committee recommendation
48match
#22 - 8th Report - The Seventh Carbon Budget
Environmental Audit Committee
The Government should set out clearly how its carbon budget policies will prevent the offshoring of emissions and support domestic decarbonisation, particularly in energy-intensive and trade-exposed sectors. (Recommendation, Paragraph 104)
Matched on terms: emission
Committee recommendation
45match
#7 - Current Bus Service Operators Grant disadvantages rural areas and conflicts with decarbonisation goals.
Transport Committee
The current Bus Service Operators Grant structure appears to disadvantage rural and low-demand areas, where lower fuel consumption per kilometre and longer average journey lengths can reduce the level of support received. This funding model does little to reflect the operational realities of low-density networks. As the sector transitions away from fossil fuels, a grant based on fuel...
Matched on classifier match
Committee recommendation
45match
#10 - National Policy Statement for Ports critically enables maritime decarbonisation through planning decisions
Transport Committee
Decarbonising the maritime sector is a complex and long-term challenge that requires coordinated action across government, industry and planning frameworks. While the National Policy Statement for Ports is not the vehicle for setting decarbonisation policy, it plays a critical enabling role. By embedding decarbonisation considerations into planning decisions, the NPS can help ensure that future port development aligns...
Matched on classifier match
Committee recommendation
44match
#20 - Fifth Report - Greening imports: a UK carbon border approach
Environmental Audit Committee
We recommend that the Government: a) Ensure, through the oversight of both Cabinet Committees on Climate Action, that the UK’s carbon border approach is aligned with existing environmental, trade, development and fiscal policy, through both its design and implementation stages. This should include setting out how the carbon border approach would interact with the tax and customs arrangements...
Matched on classifier match
Committee recommendation
44match
#7 - Fifth Report - Greening imports: a UK carbon border approach
Environmental Audit Committee
As the UK continues to negotiate its own trade agreements following exit from the European Union, there is an opportunity to align trade policy with the UK’s role as a leader in climate change action; further analysis is required to understand how the UK’s carbon border approach might interact with these negotiations.
Matched on classifier match
Committee recommendation
44match
#27 - Airport expansion risks climate targets and lacks demonstrated economic benefits outweighing environmental harm.
Environmental Audit Committee
Whilst it may be possible for the Government to deliver airport expansion alongside its climate and environment targets, we are concerned that the proposed environmental impact from airport expansion will make such targets significantly more difficult to achieve and at much greater effort and cost. Furthermore, the Government has not demonstrated that the economic growth from airport expansion...
Matched on classifier match
Committee recommendation
44match
#4 - Forty-Sixth Report - Achieving Net Zero
Public Accounts Committee
Government does not have a clear way of determining whether its actions to reduce emissions in the UK are transferring emissions to other countries. The net zero target applies to emissions generated within the UK and does not include emissions from the production of goods that are imported. This approach aligns with internationally agreed rules to prevent double...
Matched on terms: emission
Committee recommendation
44match
#2 - Fifth Report - Greening imports: a UK carbon border approach
Environmental Audit Committee
Multilateral and global approaches to carbon pricing represent the most appropriate way to support global decarbonisation. Since the process to negotiate and agree these is lengthy, they cannot provide the urgent action necessary in the short term. Pursuing a unilateral carbon border approach does not preclude continuing to push for global action; rather, unilateral action may support these...
Matched on terms: emission
Committee recommendation
44match
#21 - UK electricity prices are highest among IEA countries, partly due to environmental levies
Public Accounts Committee
The United Kingdom has the highest price (including taxes and levies) for domestic electricity out of 25 International Energy Agency (IEA) countries reporting in 2023. Similarly, the UK has the highest price (including taxes and levies) for industrial electricity out of 24 IEA countries, again reporting in 2023.59 The price of the UK’s electricity is almost four times...
Matched on terms: scheme
LGO / SPSO decision
42match
23-017-782 - Transport for London
LGO (Local Government & Social Care Ombudsman)
Summary: We will not investigate this complaint about the Authority’s decision that the complainant does not qualify for a payment under the Ultra Low Emission Zone scrappage scheme. This is because there is insufficient evidence of fault by the Authority.
Matched on terms: emission, scheme
LGO / SPSO decision
42match
25-001-118 - Transport for London
LGO (Local Government & Social Care Ombudsman)
Summary: We will not investigate this complaint about Transport for London’s issue and pursuit of payment for penalty charge notices issued for contraventions of its ‘low emission zone’ scheme. This is because Mr X had a right of appeal against any penalty charge notices which it would have been reasonable for him to use. He has also started...
Matched on terms: emission, scheme
Committee recommendation
40match
#19 - Fifth Report - Greening imports: a UK carbon border approach
Environmental Audit Committee
The UK’s carbon border approach needs to be aligned with the Government’s wider environmental policies, and integrated into trade, development and fiscal policy. The context for carbon border measures is not fixed, and CBAM in particular represents a new policy lever. It is important that the UK’s design for a carbon border approach include a strategy for ongoing...
Matched on classifier match
Committee recommendation
40match
#10 - Fifth Report - Greening imports: a UK carbon border approach
Environmental Audit Committee
It is at present unclear how the proposed EU CBAM might impact the UK, particularly Northern Ireland, where electricity generators are currently under the scope of the EU’s ETS. We understand that this is a dynamic discussion which depends on wider continuing negotiation between the UK and EU, as well as developments in the proposed EU CBAM. It...
Matched on classifier match
Committee recommendation
40match
#28 - Undertake detailed review of airport expansion's impact on climate, environment, and biodiversity targets.
Environmental Audit Committee
The Government must undertake a detailed review on whether significant airport expansion will realistically allow it to deliver on its legally binding climate, environment and biodiversity targets. This should include a detailed examination of the measures that need to be taken to remain within the aviation carbon budget. (Recommendation, Paragraph 115) 47
Matched on classifier match
Committee recommendation
40match
#16 - Fifth Report - Greening imports: a UK carbon border approach
Environmental Audit Committee
We recommend that the Government: a) clearly define its objectives for any carbon border approach at the outset, and ensure the choice of policy options and design consideration at each stage is led by these objectives. These should encompass the need to drive decarbonisation across Greening imports: a UK carbon border approach 49 the economy to address climate...
Matched on classifier match
Committee recommendation
40match
#11 - Fifth Report - Greening imports: a UK carbon border approach
Environmental Audit Committee
The Government has committed to ensuring businesses do not face any unreasonable barriers to trade; further detail would be welcome on how it plans to work with stakeholders in the EU and UK to achieve this. Given that electricity generators in 48 Greening imports: a UK carbon border approach Northern Ireland are under the scope of the EU...
Matched on classifier match
LGO / SPSO decision
38match
23-015-905 - Transport for London
LGO (Local Government & Social Care Ombudsman)
Summary: We will not investigate Mr X’s complaint that Transport for London failed to pay him the correct amount under the Ultra-Low Emission Zone van scrappage scheme. This is because there is not enough evidence of fault to warrant an investigation.
Matched on terms: emission, scheme
LGO / SPSO decision
38match
23-014-476 - Brighton & Hove City Council
LGO (Local Government & Social Care Ombudsman)
Summary: Mr X complained about a resident’s parking scheme which the Council sets charges for based on vehicle emissions. The Council is not at fault. It administers the scheme in line with a 2018 traffic regulation order and the fees are agreed and approved each year by the relevant Council committee.
Matched on terms: emission, scheme
Committee recommendation
36match
#25 - Implement UK ETS changes to remove conventional aviation fuel from free allocations.
Environmental Audit Committee
We recommend that the Government implement its proposed changes to the UK ETS so as to remove conventional aviation fuel from free allocations, and that it consult on a methodology to include SAF in the ETS in a way which does not inhibit the development and use of SAF in UK aviation.
Matched on classifier match
Committee recommendation
32match
#18 - Fifth Report - Greening imports: a UK carbon border approach
Environmental Audit Committee
We recommend that the Government, at the design stage: a) Include a strategy to engage with the public in the design of the carbon border approach to develop and maintain public support and keep the public informed of the changes that would occur, the rationale and methodology supporting the changes, and their impact and timescales; and b) Conduct...
Matched on classifier match
Committee recommendation
32match
#14 - Fifth Report - Greening imports: a UK carbon border approach
Environmental Audit Committee
As the report of the Treasury’s Net Zero Review notes, there can be no one-size-fits- all mechanism to address carbon leakage risks. The UK’s carbon border approach needs to comprise a set of complementary policies, designed to drive industrial decarbonisation in the UK and globally. A CBAM will be an important lever to support decarbonisation in key foundational...
Matched on classifier match