Britain wants to put shipping in the carbon trading system

Britain has launched a consultation on possible changes to its emissions trading system, including the addition of the shipping sector and stricter ceilings set under the system, to help it achieve the zero emissions target, according to published documents. on Friday and saw Reuters.

Britain launched a domestic emissions trading scheme (ETS) in May last year to replace the European Union’s ETS after leaving the bloc.

The program covers around 1,000 power stations, factories and airlines, which account for about a third of Britain’s emissions.

Shipping has not yet been included in the UK or EU program, and the European Union is also seeking to introduce shipping in its emissions despite resistance from some in the industry.

“We propose to include domestic shipping in the UK Emissions Trading Scheme by mid-2020 and will seek to provide more details on the implementation schedule within the year,” said the consultation paper from the Ministry of Enterprise, Energy and Industry Strategy.

According to the ETS, the government sets a gradually declining ceiling on the amount of emissions that a sector or group of sectors can produce. It generates carbon licenses for these emissions and companies have to buy one for every ton of carbon dioxide (CO2) they emit.

The consultation said it would also seek to adjust the ETS ceiling from 2024 to align it with the country’s goal of achieving clean zero emissions by 2050.

Many participants in the program called on the government to link it to the European system, which would allow exchanges between them to create a common coal price and boost liquidity.