TO BE PUBLISHED September 2025
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This conference will examine next steps for the UK Emissions Trading Scheme and the way forward for expansion, integration, and long-term policy development.
We expect discussion to focus on implications of expanding the scheme to the maritime and waste sectors, the introduction of the UK Carbon Border Adjustment Mechanism, next steps for UK-EU linkage, and the evolving role of emissions trading in delivering net zero goals.
It will bring together key stakeholders and policymakers to discuss priorities for the future design and implementation of the UK ETS, building on recent developments including the UK ETS 2026 Auction Calendar and Expansion Confirmation, the UK Carbon Border Adjustment Mechanism Policy Response, and consultations on extending the ETS cap beyond 2030.
Delegates will consider operational, financial, and administrative impacts of scope expansion, the development of robust monitoring, reporting, and verification systems for new sectors and greenhouse gas removals, as well as strategic considerations for delivering long-term market stability.
Following the announcement of linkage between the UK and EU schemes, sessions will provide delegates the opportunity to consider how the UK ETS and CBAM can align with the EU schemes. Implications of this linkage on policy evolution and timelines for the UK and EU will be discussed, looking at next steps for stakeholder engagement and preparedness, and financial strategies for investment into decarbonisation. Further discussion is expected on the future for UK policy on free allocation allowances, and the development of innovation and removal strategies that contribute to the UK’s carbon budgets and net zero targets.
We expect sessions in the agenda to bring out latest thinking on transition management for new sectors, the pursuit of effective decarbonisation whilst minimising administrative burdens, and incentives for investment and reducing emissions across the economy, in line with the advice of the Climate Change Committee and international commitments.
With the agenda currently in the drafting stage, overall areas for discussion include:
- sector transitions:
- practical challenges for maritime and waste sectors in meeting early MRV requirements fairly and feasibly
- priorities for sector guidance, support measures, and exemptions to aid a smooth transition
- evolving approaches to market stability:
- updates to the Cost Containment Mechanism and strengthening market resilience
- refinements to auction design and rules for allowance banking post-2030
- strategies for system flexibility while giving businesses enough certainty to plan ahead
- review of free allocation frameworks:
- adequacy of current free allocation benchmarks as sectoral emissions profiles change
- transitional support for sectors facing both ETS obligations and CBAM coverage until linkage
- integration of removals and new mitigation options:
- addressing practical obstacles for maritime and waste sectors in meeting early MRV requirements, including clarity of rules and cost pressures
- the market impact of removals integration on carbon pricing
- UK-EU ETS cooperation:
- legal options and technical steps to support formal cooperation between the UK and EU ETS
- evaluating the impact of linkage on policy evolution within the UK
- assessing risks and benefits of UK and EU ETS links and strategies for managing transitional impact
- support for local authorities and public service providers:
- reducing administrative and financial burdens of ETS compliance in the waste sector
- models for equitable cost distribution between operators, service users, and government
- alignment of ETS evolution with climate goals:
- considering whether revised caps and market reforms can better reflect the Seventh Carbon Budget trajectory
- complementary measures needed to close gaps to net zero
- methods of tracking scheme effectiveness over time
