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Integration of carbon removals in the UK ETS – a blueprint for the EU ETS?

The UK government has begun deliberation over how to integrate greenhouse gas removals (GGRs) into their compliance carbon market. The consultation sets the stage for the future of GGR demand in the UK and for UK ETS supply as net zero targets draw nearer. The UK government expresses a preference for providing removals operators with allowances while maintaining the gross cap. While no concrete timeline is in place, the document foresees 2028 as the earliest possible start-date.

Last week the UK government launched a consultation seeking feedback on how to incorporate greenhouse gas removals (GGRs) under the UK ETS. The consultation consists of a report detailing the policy options and the preferred option, questions for stakehold...

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