UK Emissions Trading Scheme: Business and Regulations Impact Assessment (BRIA)

14. Post-implementation Review

As previously highlighted, there is a range of forthcoming consultations on various aspects of the UK ETS. These are further highlighted in Annex B.

We will deliver additional impact assessments as appropriate following further consultations. We will also keep under review the possible impacts that any changes to the free allocation policy, as part of the phase 2 Free Allocation Review process, could have on Scottish operators.

There is also a wider programme of evaluation being undertaken by DESNZ/UK ETS Authority over the years 2022-2026. This will look retrospectively at the UK ETS and aims to: evaluate the implementation of the scheme and possible impacts that it might have on delivery; assess the impacts of the scheme and inform the first whole system review of the UK ETS (scheduled for 2023).

The evaluation includes a review of the cap, free allocation, and market stability mechanisms. Data will be collected from both primary and secondary sources, with interviews and surveys of stakeholders taking place for the primary data collection. Future changes to the scheme will be evaluated in line with the 2028 statutory review and stakeholder engagement in the form of interviews and surveys will be used as the primary means of evaluating future changes, building on the evaluation programme, to be completed in 2026.