The outcome of the consultation on integrating greenhouse gas removals in the UK Emissions Trading Scheme has been published.

Having consulted with over 160 organisations, representing a wide range of stakeholders from UK ETS sectors, greenhouse gas removal developers, the finance sector, voluntary carbon market sectors, NGOs and academics, and the land-use sector, the results include the following:

Greenhouse gas removals (GGRs) should be integrated into the UK ETS by the end of 2028, aiming for integration to be operational by the end of 202, and removal allowances should be awarded to GGR operators only ex-post (that is only once carbon sequestration has taken place and been verified).

The UK ETS Authority will also require projects to demonstrate a minimum carbon storage period for carbon of 200 years before they are eligible for entry into the UK ETS.

Greenhouse gas removal allowances and existing UK emissions allowances (UKAs) should be differentiated and the UK ETS Authority intends to provide auctions to facilitate a route to market for GGR operators.

The UK ETS Authority has yet to make a decision on whether high-quality UK woodland removals should be included in the UK ETS.

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