The UK ETS Authority has published its 2024 report on the functioning of the carbon market, which records a 10 per cent fall in industrial emissions compared with the previous year. While the report describes the scheme’s fourth year as an operational success, it does not explain the drivers behind the reduction in emissions.

The Chemical Industries Association said:

”High carbon and energy prices in the UK have driven a wave of closures across the chemical sector. Our greenhouse gas footprint under the UK ETS has fallen 38% since 2021, but that reduction is largely the result of site closures and lower production. If this trend continues, the UK risks offshoring the entire sector within the next five years. 

For energy intensive industries, the alternatives to gas-fired heat – electricity, hydrogen and biomass – remain out of reach. They are either not competitive or not accessible at the scale needed.

 Next year the UK ETS Authority will publish a comprehensive assessment of the scheme’s long-term impacts. Whislt we look forward to a more detailed assessment of the scheme’s impact on our sector, we need imminent changes to the UK ETS to stop further deindustrialisation”.

Topics