UK to allow use of carbon removals in Emissions Trading System

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🗞️ Driving the news: The UK government has announced that engineered greenhouse gas removals (GGRs) will be integrated into the UK Emissions Trading Scheme (ETS), allowing companies to use verified carbon removals—such as Direct Air Capture (DAC) and BECCS—to meet emissions allowances
• The legislation is expected by the end of 2028, with implementation targeted for 2029

🔭 The context: The UK ETS, established in 2021 to replace the EU system post-Brexit, sets a cap on emissions for high-emitting sectors and facilitates carbon pricing via tradable allowances
• As the UK targets net zero by 2050, incorporating GGRs is seen as essential for offsetting residual emissions in hard-to-abate sectors
• The move follows a public consultation and reflects a growing international trend to link removal technologies with compliance markets

🌍 Why it matters for the planet: Integrating GGRs into the ETS provides a regulatory mechanism to accelerate deployment of permanent carbon removal technologies, critical for climate scenarios requiring negative emissions
• However, strict eligibility rules—such as a 200-year carbon storage requirement—are essential to maintain environmental integrity and prevent offset misuse
• If done effectively, the policy could catalyze investment in domestic removal capacity and send a strong demand signal to innovators

⏭️ What's next: The UK will legislate the ETS integration by 2028 and launch operational mechanisms by 2029, including verified carbon removal auctions and project certification pathways
• Initially, only UK-based removal projects will qualify, and removals will be issued allowances post-verification
• The ETS cap will remain fixed, ensuring GGRs substitute—not increase—total permitted emissions. Decisions on including nature-based removals like forestry remain under review

💬 One quote: “The UK ETS could drive both emission reductions and carbon removal in one efficient market.” – UK ETS Authority, Consultation Response

📈 One stat: Apparel sector emissions hit 944 million metric tons in 2023—2% of global emissions—highlighting the urgent need for decarbonization across high-impact industries

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