The government has announced tighter emission limits for industries under the UK Emissions Trading Scheme, with the publishing of the 2024 carbon allowance auction calendar. The 2024 calendar for the UK’s Emissions Trading Scheme will limit the number of carbon allowances for companies to buy in 2024 to 69 million – 12.4% fewer than in 2023, and their lowest-ever level. By 2027, this will fall to around 44 million – a 45% reduction on 2023 – before reaching around 24 million by 2030. It puts plans announced earlier this year into action – to reduce the cap on carbon emissions under the Emissions Trading Scheme in line with the UK’s ambitious net zero strategy. Through the scheme’s auctions process, companies in industries including manufacturing, power and aviation are required to buy allowances for every unit of carbon they emit. With fewer available to buy, these sectors will need to take further steps to cut their emissions.
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