MS, Cabinet Secretary for Climate Change and
Rural Affairs: The UK Emissions Trading Scheme (UK ETS) Authority
– formed of Welsh Government, UK Government, Scottish Government,
and Northern Ireland Executive – has today published two
consultations on the expansion of the UK ETS.
In July 2023 the Authority confirmed its intention to bring
energy from waste and waste incineration into the scheme from
2028, with a two-year monitoring, reporting, and verification
only period from 2026. Today's consultation provides further
details on how this expansion will be implemented, giving clarity
to drive investment in decarbonisation.
The second consultation follows the Authority's announcement,
also last July, that the scheme is a considered to be a suitable
long-term market for greenhouse gas removals. Today's publication
explores how UK-based engineered greenhouse gas removal
technologies such as Direct Air Carbon Capture, where carbon
dioxide is removed from the air and permanently stored, could be
integrated into the UK ETS. In doing so, it aims to stimulate
investment in these technologies. It also further considers the
permanence of storage, costs and potential wider land management
impacts if high-quality GGRs from new UK woodland were to be
included in the scheme.
The waste consultation will be open for 8 weeks, until 18 July
2024. This shorter consultation period is intended to allow time
for further preparatory work to be completed and enable
implementation of the proposals by 2026, as previously committed
to. Any risk arising from this approach will be mitigated by
extensive engagement activity to ensure full stakeholder
involvement. The greenhouse gas removals consultation will be
open for 12 weeks until 15 August 2024.
The Authority, along with officials across the Welsh Government,
will engage extensively with affected stakeholders to gather
views to support final decisions on how the UK ETS will be
expanded. These reforms to the UK ETS will require amendments to
the UK Greenhouse Gas Emissions Trading Order, so the Senedd,
along with other UK Parliaments, will have the opportunity to
scrutinise plans once they are finalised.
Collectively, the information gathered will be invaluable in
informing expansion of the scheme, which will in turn, increase
the greenhouse gas emissions covered under the scheme emissions
limit. I expect to write again on further expansion proposals in
the coming months. This work will incentivise innovation, drive
emission reductions, and help secure a resilient, sustainable
future for Wales.
I have written to the Chairs of the Climate Change, Environment,
and Infrastructure Committee and the Legislation, Justice, and
Constitution Committee to inform them of these consultations.
