Morning, Monday, 8th September 2025
Online
This conference will examine next steps for the UK Emissions Trading Scheme. Areas for discussion include options for expanding the scope of the scheme, integrating greenhouse gas removals, aligning with international regimes such as the EU Emissions Trading Scheme, and taking forward long-term strategy and governance as the UK Emissions Trading Scheme moves towards its second allocation phase.
It takes place following significant recent policy developments, including an agreement in principle to link the UK and EU carbon markets, confirmation of the scheme’s expansion to the waste and maritime sectors, and inclusion of greenhouse gas removals, alongside funding commitments for carbon capture, use and storage, greenhouse gas removals and hydrogen as announced in the recent Spending Review and Industrial Strategy.
UK-EU linkage and introduction of the Carbon Border Adjustment Mechanism
With the proposed linking of the UK and EU schemes, delegates will consider strategy and practicalities for alignment, including how far the UK can harmonise with the EU Emissions Trading Scheme without limiting domestic flexibility. Delegates will assess the potential impact of this linkage on policy development and timing. Areas for discussion include options for addressing administrative and compliance burdens on businesses operating across both regimes.
There will also be consideration of financial strategies to support sectoral decarbonisation and removal solutions for hard-to-abate sectors, as well as the impact on international suppliers and the division of compliance responsibilities between importers and exporters.
Market integrity
Further discussion is expected on the future for UK policy on free allocation allowances in preparation for the second allocation period in 2027. Delegates will assess how market stability mechanisms can best support the reduction of free allocation allowances. Market policies and management will be discussed, looking at ways to maintain carbon market stability, flexibility and integrity.
Sessions consider methodologies to support the development of high-integrity mandatory and voluntary carbon markets. Standards and methods for monitoring, reporting and verification will also be considered.
Stakeholder preparedness for expansion to the maritime and waste sectors will be discussed, looking at operational, financial, and administrative impacts of scope expansion, including equitable cost distribution.
Greenhouse Gas Removals - developments in policy, funding, technology and markets
Further sessions will consider next steps for greenhouse gas removals, including carbon capture, usage and storage and nature-based removals, following announcement of greenhouse gas removal inclusion in the UK Emissions Trading Scheme. Delegates will consider lessons learned from the operation of greenhouse gas removals in voluntary carbon and nature markets.
How greenhouse gas removal markets might be implemented alongside - or integrated within - the Emissions Trading Scheme and Carbon Border Adjustment Mechanism will be considered. Sessions will also examine the way forward for voluntary carbon and nature markets following the Government’s consultation last year and the ongoing independent review of greenhouse gas removals.
Developments in carbon capture, usage and storage policy, funding, and technology will be discussed, as well as how it can be utilised for hard-to-abate sectors.
Future of carbon markets beyond 2030
Delegates will also discuss prospects for continuing the UK Emissions Trading Scheme beyond 2030. They will assess the effectiveness of the scheme in light of recent reviews and consider best practice and potential areas for improvement in its design. Sessions will explore how the UK Emissions Trading Scheme might evolve in the context of wider policy developments and evaluate how carbon markets can complement other national and international decarbonisation approaches.
Additional areas for discussion
- UK-EU linkage & international regimes:
- alignment with EU Emissions Trading Scheme standards - phased introduction of the EU Carbon Border Adjustment Mechanism from 2026 and UK equivalent from 2027
- administrative and compliance challenges for businesses operating across both regimes
- stakeholder engagement: communication with affected sectors - support and preparedness for new compliance and reporting responsibilities - coordination across UK and EU markets
- sectoral competitiveness & decarbonisation: financial support for hard-to-abate sectors - balancing climate ambition with economic resilience - industrial competitiveness under emissions trading and border mechanisms
- free allocation reform: exposure metrics for carbon leakage risk - managing transition in free allowances for Phase II - assessment of industry benchmarks and trade exposure
- carbon pricing & market signals: concerns about carbon price levels - managing volatility from UK-EU linkage - reinforcing price signals to incentivise decarbonisation
- monitoring standards: development of methodologies for direct and embodied emissions - achieving integrity in mandatory and voluntary markets - frameworks for monitoring, reporting and verification
- carbon capture, usage & storage: funding and support models - recognition of non-pipeline transport methods - role in decarbonising aviation, cement, steel and chemical sectors
- nature-based & voluntary carbon markets: options for including nature-based removals in the Emissions Trading Scheme - lessons from voluntary markets - approaches to carbon accounting and accreditation
- governance: implications of National Audit Office review - ongoing statutory review of UK Emissions Trading Scheme Authority - preparation for Phase II and long-term cap and banking rules
- strategic coordination:
- alignment with wider decarbonisation policies - integration with proposals in the forthcoming Climate Action Plan
- complementary role of carbon markets within the UK’s net zero strategy
All delegates will be able to contribute to the output of the conference, which will be shared with parliamentary, ministerial, departmental and regulatory offices, and more widely. This includes the full proceedings and additional articles submitted by delegates. As well as key stakeholders, those due to attend include parliamentary pass-holders from the House of Commons and officials from Department for Energy Security and Net Zero; Department of Agriculture, Environment, and Rural Affairs, Northern Ireland; Department for Transport; Department for Business and Trade; HM Treasury; Department for the Economy, Northern Ireland; National Infrastructure Commission; National Infrastructure and Service Transformation Authority; Marine and Coastguard Agency; Ministry of Defence; Crown Commercial Service; National Wealth Fund; Office for Investment; the Welsh Government; and The Scottish Government.
