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

3. Consultation

3.1 Within Government

The following government agencies and departments have been consulted by the Scottish Government in the Authority consultation and the preparation of this BRIA between June 2022 and April 2023:

• The Division of Energy Industries, Food and Drink Division, Strategic Commercial Assets Division and Industrial Transformation and the Office of the Chief Scientific Advisor in the Scottish Government have provided advice in relation to issues on industrial decarbonisation, Greenhouse Gas Removals (GGRs) and/or expansion within the traded sector;
• Transport Scotland in the Scottish Government advised on issues on the maritime inclusion in the UK ETS and aviation free allocations;
• The Circular Economy Division in the Scottish Government advised on the inclusion of waste incineration activities in the UK ETS;
• The Onshore Electricity, Strategy and Consents Division in the Scottish Government provided advice in relation to issues on biomass and combined heat and power (CHP) policies;
• The Agriculture Policy Division in the Scottish Government has provided advice in relation to issues on agriculture and land use;
• The Scottish Government Legal Directorate has provided advice on the legal issues raised in this consultation;
• The Authority members and other government departments (Department for Transport and His Majesty’s Treasury); and
• Scottish Environment Protection Agency (SEPA).

3.2 Public Consultation

The Authority delivered the public consultation “Developing the UK Emissions Trading Scheme” between 25 March and 17 June 2022. As part of the consultation process, and aiming to gather as much feedback as possible, the Authority carried out 47 UK-wide stakeholder engagement sessions with current and future UK ETS participants, cross-sector business groups, trade associations, thinktanks, academics and eNGOs. These sessions included high-level summaries of the consultation and topic-specific workshops, which covered proposals on the cap, free allocation changes, aviation, GGRs and the inclusion of waste and maritime, among others. Approximately, 350 stakeholders attended these engagement sessions, including Scottish stakeholders.

A total of 300 stakeholders responded to the consultation, out of which around 120 were identified as relevant for Scotland by policy teams across the Scottish Government^[13]. The Authority has reported on the findings from this consultation in the joint Government Response.

The responses to this public consultation included a variety of stakeholders, including those from the aviation, chemical, oil and gas, refining, transport, manufacturing, power, food and drink, and steel sectors, as well as other trade associations, local authorities, consultancies, think tanks, academics and NGOs, and other sectors.

3.3 Business

Businesses were primarily consulted through the public consultation “Developing the UK Emissions Trading Scheme” set out above. Scottish Government officials identified responses most relevant to Scotland – including all UK ETS operators in Scotland who responded to the consultation. Scottish businesses and UK ETS operators also participated in the workshops and roundtables hosted by the Authority during the consultation.