Question to the Department for Energy Security & Net Zero:

To ask His Majesty's Government what assessment they have made of a Cap and Share system for supporting energy transition for the UK, particularly with regard to its fairness and social and climate impacts.

The UK Emissions Trading Scheme is a cap-and-trade scheme, setting a limit on emissions from power, industry and aviation. Participants must buy and surrender allowances annually to cover their emissions.

The scheme, launched in 2021, is a key part of the Government’s approach to meeting our climate targets. Revenues from the UK ETS are used to support Government priorities including decarbonisation. The UK ETS Authority, made up of the UK Government and Devolved Governments, continues to develop the scheme to ensure it is achieving its aims, supported by thorough public consultation and assessment of its climate, economic and social impacts.