This UK wide consultation is calling for evidence on a number of potential future opportunities for the Emissions Trading Scheme (ETS) development.
The UK ETS exists to increase the ambition of the UK's carbon pricing policy. It works on a 'cap and trade' or allowance principle, where a cap is set on the total amount of certain greenhouse gases that can be emitted by sectors covered by the scheme (e.g. aviation).
This limits the total amount of carbon that can be emitted. Those industries must buy or trade emission allowances in an auction if they exceed their limit. Agriculture currently isn't included within the scheme, however these proposals include the incorporation of greenhouse gas removal (essentially supporting the growth of 'offsetting' residual emissions) into the UK ETS, and on the monitoring, reporting and verification requirements necessary to address greenhouse gas emissions in the land use and agriculture sectors (i.e. carbon auditing).
Chapter 8 within the consultation document is of most relevance.
The consultation closed on 17th June 2022.
The FUW response can be found here.