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Britain thinks about extension of very first UK ETS totally free allowance duration

Britain is proposing to extend by one year the current system of allocating free allowances under its nationwide emissions trading scheme to align it with a. prepared intro of a carbon border tax, it stated on. Thursday.

Britain, which has a target of reaching net absolutely no emissions. by 2050, introduced an emissions trading system (ETS) in 2021 to. charge power plants, factories and airlines for each tonne of. co2 they produce as part of efforts to meet that objective.

The present system uses totally free allocation of allowances to. eligible participants and airplane operators who are exposed to. worldwide competitors that do not have an extra carbon expense. concern.

The preliminary totally free allocation period was due to range from 2021. to 2025 however could be encompassed 2026 to line up with the. intro of the UK Carbon Border Modification Mechanism in. 2027, the UK ETS Authority, which manages the scheme, stated.

The latter goals to charge a carbon import levy on some. items to help to safeguard organizations against less expensive imports. from countries with less strict climate policies.

The proposal is being sent for assessment with a deadline. to submit reactions set for Oct. 11, the authority said.

The UK ETS Authority is now proposing that reporting under. the current duration will continue as prepared from April 1 to June. 30 2025, and applications for the second complimentary allocation period. will be made in 2026, it defined.

Updated lists of installations for smaller emitters under. the plan would come into effect from 2026, with the. application window for inclusion on these lists open from April. 1 to June 30 2025, it added.

Changes to the existing guidelines regarding the electrical energy. generator classification will come into result in 2026, the. authority said.

(source: Reuters)