Integrating Greenhouse Gas Removals into the UK Emissions Trading System (UK ETS) UK government considering engineered and nature-based removals credits for compliance with the UK ETS

The UK government has announced plans to integrate Greenhouse Gas Removals (GGRs) into the UK Emissions Trading Scheme (UK ETS). Their proposal, which recently went through a round of stakeholder consultation, aims to enhance the flexibility and effectiveness of the UK ETS, and also to provide a long-term market mechanism to incentivize the development of more GGR projects in the UK.

This update provides companies with a summary of the opportunities and challenges associated with this proposal, including the potential financial benefits of investing in GGRs ahead of the integration start-date.