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Emissions Trading

EU Emissions Trading Scheme


The EU Emissions Trading Scheme is one of governments central policies to reduce emissions of Carbon Dioxide. Emissions Trading is an approach designed to allow emissions reductions to be made in the most economically efficient way.

The scheme is mandatory and involves a wide range of sectors including the production of cement, glass and electricity. All participants in the scheme are given a free allocation of allowances (1 allowance = 1 tonne of CO2), and must buy more if they wish to emit more.

UK Emissions Trading Scheme


The UK Emissions Trading Scheme was the world's first economy-wide greenhouse gas emissions trading scheme, when it began in March 2002. To enter the UK Emissions Trading Scheme (UK ETS), the 33 Direct Participants bid annual, cumulative greenhouse gas emissions reductions targets set against a 1998-2000 baseline, in return for a share of the incentive money of £215 million. This has now ended.

Carbon Reduction Commitment

The Carbon Reduction Commitment (CRC) is a new scheme, which will apply mandatory emissions trading to cut carbon emissions from large commercial and public sector organisations (including supermarkets, hotel chains, government departments, large local authority buildings) by 1.1 MtC / year by 2020.

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