Environment Agency charges proposal for greenhouse gas emissions

Overview

Climate change has been recognised as one of the biggest threats to current life on earth. Increased levels of atmospheric pollutants such as carbon dioxide have contributed to increased temperatures not just on land, but in the seas and oceans as well. This is contributing to rising sea levels and extremes in temperature, impacting the health of humans, animals and plants.

Part of our role is to regulate these emissions through the UK Emissions Trading Scheme (UK ETS). This scheme places a cap on the levels of greenhouse gases that can be emitted into the atmosphere. Permits are issued to operators who qualify for the scheme. Operators must monitor and report their emissions on an annual basis, surrendering allowances equal to their emissions. UK ETS continues to expand to cover other greenhouse gas emissions from an increasing number of sectors.

This consultation sets out the updated charges proposed for UK ETS customers, as well as customers of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), and charges for the UK’s Kyoto Protocol national registry (the national registry). It also sets out charge proposals for areas of UK ETS expansion.

What we are consulting on

We would like you to share your views on our proposed charging structure for regulating UK ETS which also includes both the UK ETS and national registries and CORSIA. We have outlined the proposed new charging structure in a way to help you understand all the changes. We would like to know whether you agree with our proposals and would appreciate any suggestions you have on making them fairer in any way.

About this consultation

This consultation includes the consultation document and supporting documentation: 

• guide explaining how we calculate our charges
• draft charging scheme from April 2025

These documents are available in the 'related' section at the bottom of this page.

The consultation document includes our charge proposals for:

• UK ETS for installations and aviation
• CORSIA
• UK ETS and national registries
• proposed UK ETS expansion to maritime activities and, energy from waste and waste incineration installations from January 2026.

Our proposals are set out in more detail in the main part of this consultation.

Why your views matter

We would like you to share your views and welcome your feedback as it helps us to understand the impact of our charge proposals and make an informed decision.

We know our charges can affect those we regulate so we have considered our proposals carefully. We are interested to hear how you think we might regulate more fairly, while safeguarding the environment more effectively. 

Responding to this consultation

This consultation runs for 8 weeks from 29 November 2024 until midnight on 24 January 2025. We will consider all responses received by the closing date before finalising our proposals to submit for approval by government. 

Please submit your response using this online consultation tool, as it provides an easy and efficient way to respond. It will also help us to: 

• gather all responses in one place 
• summarise responses quickly and accurately 
• reduce the cost of the consultation  

If you do not wish to respond using the online tool, you can download the response form (using the relevant link in the 'related' section at the end of this page) and email the completed form using the subject header 'Charges consultation: ETS' to GHGTeam@environment-agency.gov.uk. 

You can also view the consultation document by clicking on the relevant link in the 'related' section at the end of this page.

Ask for a copy of the consultation document

Contact us if you would like a copy of the consultation document sent to you. You can do this by contacting our Greenhouse gas helpdesk by email:
GHGTeam@environment-agency.gov.uk 

Please click on the ‘Online consultation’ link below to answer the consultation questions.