UK is set to launch its own ETS after leaving the EU
Concerns grow ahead of UK carbon market launch
The UK is set to start its equivalent of the EU ETS on 19 May, but it may take some time for market participants to adjust
The UK emissions trading system (UK ETS) will begin trading on 19 May, when the government holds the first auction of UK allowances (UKAs). Futures trading will begin on the same day, with the Ice Futures Europe exchange preparing to list contracts out to December 2023. The government announcement in early March brought to an end many weeks of uncertainty for market participants. However, it is still not clear at what price UKAs will trade. Some traders see the risk of an early price spike as compliance buyers—particularly utilities—rush to build portfolios to hedge their forward power sales, while others suggest activity will be modest at the start. “It will take time for the UK marke
Also in this section
22 July 2025
Sinopec hosts launch of global sharing platform as Beijing looks to draw on international investors and expertise
22 July 2025
Africa’s most populous nation puts cap-and-trade and voluntary markets at the centre of its emerging strategy to achieve net zero by 2060
17 July 2025
Oil and gas companies will face penalties if they fail to reach the EU’s binding CO₂ injection targets for 2030, but they could also risk building underused and unprofitable CCS infrastructure
9 July 2025
Latin American country plans a cap-and-trade system and supports the scale-up of CCS as it prepares to host COP30
