ICE announces UK Emissions Trading Scheme auctions will launch in May
ICE has announced the publication of the auction calendar for the UK's new Emissions Trading Scheme, to increase the climate ambition of the nation's carbon pricing policy.
ICE has announced the publication of the auction calendar for the UK's new Emissions Trading Scheme, to increase the climate ambition of the nation’s carbon pricing policy.
A UK Emissions Trading Scheme (UK ETS) replaced the UK’s participation in the EU ETS on 1 January 2021. The 4 governments of the UK have established the scheme to increase the climate ambition of the UK’s carbon pricing policy, whilst also protecting the competitiveness of UK businesses.
The UK ETS will apply to energy intensive industries, the power generation sector and aviation.
The Department for Business, Energy and Industrial Stratergy (BEIS) appointed Intercontinental Exchange, Inc. (ICE) to host emissions auctions. The leading operator of global exchanges and clearing houses and provider of mortgage technology, data and listings services, has now announced the publication of the auction calendar for the UK’s new Emissions Trading Scheme (“ETS”) with the first auction due to commence on May 19, 2021, subject to regulatory approval.
UK Energy Minister Anne-Marie Trevelyan, said: “The publication of our ambitious UK Emissions Trading Scheme’s auction calendar is another crucial step towards our target of eliminating our contribution to climate change by 2050. Our scheme is even more ambitious than the EU system it replaces and today’s publication will give businesses and operators clarity over this year’s supply of emissions allowances, enabling them to plan ahead, build back greener and better prepare for the transition to a low-carbon economy”.
ICE offers customers access to the largest and most liquid environmental markets in the world. More than 14 gigatonnes of carbon trades on ICE annually, which is equivalent to approximately 40% of the world’s total annual emissions footprint based on current estimates.
Gordon Bennett, Managing Director of Utility Markets at ICE, said: “We are excited about the addition of a new carbon market and believe the UK ETS will be pivotal in supporting the climate ambitions of the four governments of the UK."
"UK emissions have fallen 41% since 1990, more than any other major developed country and this has been driven by the UK’s leadership in promoting market-based mechanisms to support climate goals. There is an enormous opportunity for cap and trade programs to take an even greater role in supporting the goals of the Paris Agreement, whether it is increasing their sector coverage or encouraging international linking.”