ETS Allowances decrease in UK for 2021-2025


The British government has published its revision on the number of ETS’s free allowances to businesses operating in relevant sectors with a risk of carbon leakage during the years 2021 through 2025. The total number of permits is 169.46mn with the highest allocation of 37.79mn in 2021 and the lowest of 31.91mn in 2025.

This update reflects the activity patterns recorded to ensure that the amount of free allocations provided to operators aligns with their activity levels in 2023. These allocations are based on activities in previous years and are adjusted annually.

The government has been considering feedback from businesses to implement changes to the allocation system, making it more responsive to actual emissions and activity levels.