Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, pursuant to the Answer of 13 March 2025 to Question 36729 on UK Emissions Trading Scheme: Ceramics, whether he has made a sectoral assessment of the potential merits of exempting ceramics from the UK Emissions Trading Scheme.

The UK Emissions Trading Scheme, whose coverage includes energy intensive industries such as those in the ceramics sector, allows installations who meet certain criteria to apply to be exempted from the main scheme by obtaining ‘small emitter’ classification.

Over half of sites in the ceramics sector are already exempted from the UK ETS via achieving Small Emitter status. The UK Emissions Trading Scheme as an essential part of our approach to cutting emissions and driving green investment. UK ETS participants, including those in the ceramics sector, are provided with free allocations, to incentivise emissions reduction and protect energy intensive, trade exposed industries from the risk of carbon leakage. We have guaranteed current free allocation levels until 2027 and are currently reviewing how we calculate free allocations to better support sectors most at risk of carbon leakage.

We will always work in the best interest of industry.