Members discussion: Integrating greenhouse gas removals (GGR) in the UK Emissions Trading Scheme (UK ETS) consultation

The REA invites members to join our discussion on the Government’s Integrating greenhouse gas removals in the UK Emissions Trading Scheme consultation, which closes on August 15th, 2024. After a short introduction, we will work through the consultation questions, outlining current REA thinking and asking for member input to incorporate into our response.

About this consultation

Integrating Greenhouse Gas Removals into the UK ETS
The consultation recognises both nature-based solutions (like afforestation, soil carbon sequestration, and habitat restoration) and engineering-based approaches (like Bioenergy Carbon Capture and Storage (BECCS), Direct Air Carbon Capture and Storage (DACCS), biochar, and enhanced weathering) as necessary for net zero in the UK.

There are 34 questions in total across five key areas:
• Principles for Policy Design
• The cap: considers what happens to the cap when GGRs are integrated into the UK ETS.
• Allowance design: considers how allowances should be awarded to GGR operators, the extent to which they differ from existing emissions allowances and how allowances should enter the UK ETS market.
• Permanence: considers how carbon storage could be valued under the UK ETS, including duration of storage provided and associated risks of that carbon being re-released to the atmosphere.
• Pathways to integration: considers the degree to which GGRs should be integrated into the UK ETS, and when integration should take place.

The consultation document and further details can be found here: https://www.gov.uk/government/consultations/integrating-greenhouse-gas-removals-in-the-uk-emissions-trading-scheme