The UK will stay tin the emission trading system (ETS) up to 2020 at the least, despite Brexit.

Minister of State for Energy and Clean Growth Claire Perry confirmed the continuing participation in the scheme until at least the end of phase three in 2020, whilst speaking at the cross-party EU Energy and Environment Sub-Committee.

The UK is in an interesting position, being one of the fastest European nations to decarbonise, but also being the second-largest emitter of greenhouse gases.

The ETS creates a charge on power generation and industry for every tonne of carbon dioxide (CO2) emitted, and therefore the UK’s businesses are high payers to the scheme. As such avoidance of any disruption is seen as the preferred short-term solution, but longer the rapid decline in emissions and desire for flexibility create room for speculation.

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