UK introduces Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2025
6th February 2025 – The UK government has announced The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2025, a new order that aims to enhance the effectiveness of the UK’s emissions trading scheme (ETS). The ETS is a cap-and-trade system that puts a price on carbon emissions, incentivizing businesses to reduce their greenhouse gas emissions.
Key Changes
The main changes introduced by the Amendment Order include:
- Tighter Cap: The order reduces the overall cap on emissions within the ETS, making it more stringent for businesses to emit carbon dioxide.
- Expanded Coverage: The scope of the ETS is expanded to include additional sectors, such as the shipping and aviation industries.
- Strengthened Enforcement: The order introduces new enforcement measures to enhance compliance with the ETS, including increased penalties for non-compliance.
- Innovation Fund: The order establishes an Innovation Fund to support the development and deployment of low-carbon technologies.
Rationale for the Amendment
The Amendment Order aligns with the UK’s ambitious climate change targets, as outlined in the Climate Change Act 2008. The government recognizes the need to accelerate emissions reductions to combat climate change, and the revised ETS is a key component of this strategy.
Impact on Businesses
Businesses within the scope of the ETS will be directly affected by the changes. They will need to adjust their operations to meet the tighter cap and expand their reporting to cover the new sectors included in the scheme.
Environmental Benefits
The Amendment Order is expected to have significant environmental benefits by reducing overall greenhouse gas emissions in the UK. The tighter cap and expanded coverage will incentivize businesses to invest in low-carbon technologies and practices, contributing to the transition to a net-zero economy.
Conclusion
The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2025 is a significant development in the UK’s efforts to tackle climate change. By tightening the cap, expanding the scope, and strengthening enforcement, the government aims to drive further emissions reductions and support the transition to a low-carbon economy.
The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2025
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UK New Legislation a new article on 2025-02-06 09:49 titled “The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2025”. Please write a detailed article on this news item, including any relevant information. Answers should be in English.
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