UK ETS Increases Free Allowances for 2021-25


UK ETS free allowances allocation for 2021-25 has concluded in a final revision by the UK government. The revision shows a slight increase in the allowances, totalling 170mn UK ETS allowances allocated to installations at risk of carbon leakage.

Allowances for 2021 stand at 463, gradually decreasing to 431 by 2025. The allocation levels are determined depending on the previous year’s activity and are adjusted for upcoming years.

The UK government has not yet responded to the proposed changes in the system of free allocation, where provisional allocations are established at the beginning of the year and adjusted at year-end based on actual activity.