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1/6/20 - Elements of new Emissions Trading System - UK Government response

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14/5/20 - Letter to BEIS on need for clarity on UK carbon pricing policy from Jan 2021

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16/4/20 - Climate Change Agreements (CCA) consultation announced

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Design options for a third Climate Change Agreement Scheme

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ETG submissions to UK Government on post-Brexit policy options

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ETG's response to Future of Carbon Pricing consultation

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Key EU ETS issues to resolve in the case of the UK leaving the EU without an agreement

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Key objectives for Brexit transition of carbon reduction schemes

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Update to participants in EU ETS following agreement of Article 50

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Background
The Kyoto Conference on Climate Change in December 1997 proposed the establishment of a legally binding agreement on reductions of greenhouse gas (GHG) emissions by developed countries. The EU has agreed to reduce emissions based on a basket of 6 gases by 8% of 1990 levels by the period 2008 to 2012. The UKs legally binding target under an EU burden sharing agreement is 12.5% of 1990 levels by 2008-2012. The Protocol resulting from Kyoto identified emissions trading as one of the means by which reductions could be achieved.

What is Emissions Trading?
Emissions trading at a national or international level enables industry to achieve required reductions in carbon emissions in the most economically efficient way. Companies are allocated an emissions target. Those that can reduce emissions at least cost can go further than their target and sell the excess to companies who are finding it more difficult or expensive to reach their target. Conversely, those companies which have found it difficult to reduce emissions can buy the extra allowances they need from those who have gone further than they needed to, effectively paying someone else to do their abatement for them and, over time, establishing a market price for carbon which will help incentivise investment in carbon abatement technology.

The main areas in which ETG has been active are: