AEF supports the extension of the UK ETS beyond 2030
15th April, 2025
AEF recently responded to a consultation on extending the UK Emissions Trading Scheme (ETS) beyond 2030, when the current phase is due to end. The first phase runs from the start of 2021 until the end of 2030, and the intention of the UK ETS Authority is for the scheme to continue until at least 2050. This consultation asked 3 key questions:
- Should the scheme be extended beyond 2030?
- How long should the second phase be?
- Should emissions allowances be allowed to be banked between Phase I and Phase II of the scheme?
AEF fully supports the planned extension of the UK ETS as a key measure for incentivising decarbonisation. The scheme is the only current mechanism for applying a more effective carbon price to aviation. We also recommended a 7-year second phase, to better align the ETS with the timelines of the UK’s carbon budgets, and allowing the banking of emissions between phases.
Our full response can be viewed here or below.