Posted By Jessica Weisman-Pitts
Posted on November 29, 2024
LONDON (Reuters) – Britain has called for views on changes to its emissions trading system (ETS) that could see the shipping sector join its carbon market from 2026.
Britain’s ETS is part of its wider efforts to meet climate targets and was launched in 2021 to replace its participation in the European Union’s ETS after it left the bloc.
The scheme currently covers power plants, factories and airlines representing around a third of Britain’s emissions.
Under the ETS, the government sets a gradually decreasing cap on the amount of emissions that a sector, or group of sectors, can produce. It creates carbon permits for those emissions and companies must buy one for each tonne of carbon dioxide (CO2) they emit.
“Expanding the scheme to include the maritime sector… will ensure that the price of fuels used by the sector better reflects their environmental impacts,” the UK Emissions Trading Scheme Authority said in a statement late on Thursday.
Benchmark UK carbon permits currently trade around 36.60 pounds ($46.44) per metric ton of CO2.
The move would follow Europe, which began phasing the shipping industry into its ETS from the beginning of 2024.
The consultation, which is open to everybody, is open until the end of Jan. 23, 2025.
($1 = 0.7881 pounds)
(Reporting By Susanna Twidale; Editing by Frances Kerry)
