Small Emitters can opt out of EU ETS from 2013

Published on Friday, 25 May 2012 14:13
Posted by Matthew Abbott

The UK is offering small emitters and hospital installations the opportunity to ‘opt out’ from the EU ETS from 2013 as part of Government efforts to cut down on red-tape.

The Opt Out scheme could save industry up to £80 million from 2013-2020, depending on take up from the around 250 eligible installations, accounting for 1% of UK EU ETS emissions.

The EU ETS remains the primary scheme through which the UK will meet its ambitious carbon emission reduction targets in the EU. The opt out will help ensure that the policy is implemented in a proportionate manner.

Gregory Barker, Minister of State for Climate Change, said:

“We have worked closely with industry looking at their needs in order to develop and design a policy which genuinely saves companies money and time, while still ensuring we meet environmental goals.

"Under the proposals smaller installations, who experience higher costs from complying with the current regulations, will be able to opt out of the system from 2013. We have worked successfully with the European Commission to ensure EU regulation is proportionate.”

Government is now inviting applications for the ‘Opt Out scheme’ which has been published on the DECC website.

The application period runs until 18 July 2012.

The ‘Opt-out’ will take effect from January 2013, the start of Phase III of the EU ETS.


British Ceramic Confederation Laura Cohen:

"As a sector that is largely affected by the EU ETS small emitter opt out threshold, the Ceramic Industry welcomes the cooperation between DECC and the energy intensive sectors to produce an opt out measure, intended to reduce the administration burden, for small companies eligible for EU ETS Phase III. It will enable installations to consider the best option for their circumstances.”

Nigel Jackson, Chief Executive of the Mineral Products Association, described DECC's opt-out policy as: 

"A welcome step in the right direction. Industry is going through a tough time and anything the government can do to ease the regulatory burden can only be good for business, jobs and growth".

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