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Key Takeaways from the WEET UK ETS Conference 2025

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The Westminster Energy, Environment & Transport Forum (WEET) conference, which took place on 8 September 2025, brought together key stakeholders and experts to discuss the future of the UK Emissions Trading Scheme (ETS) and its implications for various sectors. The conference featured insightful presentations and debates on the expansion of the UK ETS, linking with the EU ETS and the integration of greenhouse gas removals (GGRs). The event featured insights from notable panellists. We have set out some key takeaways from the conference below.

Key Highlights and Reflections

  1. Expansion of the UK ETS 

    The expansion includes incorporating maritime and waste sectors by 2026 and 2028 respectively and integrating GGRs from 2029. This expansion aims to enhance the scope and effectiveness of the scheme in reducing emissions, but it was acknowledged that there are likely to be administrative and financial burdens, reporting complexities and challenges in linking with the EU ETS.

    The incorporation of GGRs into the UK ETS from 2029 was discussed as a significant step towards driving growth.  The integration will require careful consideration of technical and commercial arrangements to ensure consistency and effectiveness. The expansion of the UK ETS to new sectors will have significant compliance and contractual implications. New entrants will need to obtain permits, implement robust monitoring systems, and update contracts to reflect the costs of carbon. The maritime and waste sectors will face specific challenges in tracking emissions and allocating costs.

  2. Linking with the EU ETS 

    The potential impacts of linking the UK ETS with the EU ETS were discussed, with the debate centring on price impacts, the legal framework, and the technical feasibility of linking the two schemes. The Common Understanding between the UK and the EU (as decided upon at the UK-EU Summit in May 2025) sets the stage for exploring necessary parameters for linking, as well as acknowledging the potential implications. It was noted that negotiations are anticipated to begin in Autumn 2025, with the expectation that this will lead to a linking agreement. The timescale for linking is highly dependent on political will.

  3. Carbon Border Adjustment Mechanism (CBAM) 

    The conference also addressed the implications of the EU's CBAM on the UK. The priority is to seek exemptions or temporary zero ratings for the UK, particularly for electricity. The complexity and administrative challenges of CBAM were highlighted, emphasising the need for a fair and transparent approach.

  4. Lessons from International Carbon Markets 

    The conference also drew lessons from international carbon markets, such as California. The importance of early regulatory clarity, managing integrity risks and international coordination was emphasised to ensure the success of the expanded UK ETS.

The WEET ETS Conference provided a comprehensive overview of the challenges and opportunities associated with the expansion of the UK ETS and linkage with the EU ETS. The discussions underscored the importance of collaboration, regulatory clarity, and innovative approaches to achieve the goals of the scheme. Looking forward, the Department for Energy Security & Net Zero (DESNZ) intend to consult on the cap and further guidance on free allocation is expected to be published this year.

If you would like further information or advice on the potential implications of the developments of the UK ETS scheme on your business, please contact Michael Barlow or another member of our Environment team.

This article was written by Lucy Ashmore.