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Determining the price of the UK ETS scheme


Using Wind Energy for Hydrogen Production : An Innovative Concept Cornwall Insight considers the potential scenarios for UK carbon prices as we transition to the new UK ETS, noting the role of market tools, policy, and recent pricing trends in determining these costs.
Key findings
• The combination of an Auction Reserve Price (ARP) of £22/t and the Carbon Price Support (UK CPS), set at £18/t, set a minimum overall price for total UK carbon at £40/t.
• There is uncertainty with further market drivers potentially pushing allowance costs higher.
• The UK has initially set its emissions cap 5% lower than the previous cap it had under the EU ETS. ....

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Participating in the UK ETS from 1 January 2021


Participating in the UK ETS
Updated 10 March 2021
© Crown copyright 2021
This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: [email protected].
Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.
This publication is available at https://www.gov.uk/government/publications/participating-in-the-uk-ets/participating-in-the-uk-ets
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. ....

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