Firms covered by the European Union Emissions Trading Scheme will be able to open their UK carbon accounts later this week, the Government has announced (24 May). The EU Emissions Trading Scheme (EU ETS) is one of the policies being introduced across Europe to tackle emissions of carbon dioxide. It is one of the main components in the fight against climate change.

Participants in the Scheme are allocated allowances, each allowance representing a tonne of the relevant emission, in this case carbon dioxide equivalent. Emissions trading gives companies the flexibility to meet emission reduction targets according to their own strategy; for example by reducing emissions on site or by buying allowances from other companies who have excess allowances.

The EU ETS will become one of the main ways to cut carbon dioxide emissions, while maintaining economic growth.