ADBA submits response to the Integrating Greenhouse Gas Removals in the UK Emissions Trading Scheme
On 15 August 2024, we submitted our response to the UK Government’s consultation on Integrating Greenhouse Gas Removals in the UK Emissions Trading Scheme. This consultation is crucial for our industry’s future, potentially reshaping carbon markets and boosting AD deployment across the UK.
In our response, we advocated for early integration of GGRs into the UK ETS, ideally before 2027. This timeline would provide the certainty our industry needs and spur investment in carbon removal technologies. We strongly emphasised AD’s unique environmental benefits, including waste management, methane emission reduction, and renewable energy and fertiliser production. We urged for these co-benefits to be recognised in any differentiation of GGR allowances.
We highlighted the need to support smaller-scale GGR operators, including small on-farm AD units. We suggested simplified methodologies and aggregation mechanisms to enable their participation in the UK ETS. For managing permanence risk, we supported a buffer pool approach over an equivalence ratio, arguing it offered greater simplicity, transparency, and flexibility. In addressing woodland units in the UK ETS, we stressed the importance of biodiversity. We proposed specific measures to ensure GGR projects, including AD, positively contribute to the UK’s biodiversity goals.
If adopted, our recommendations could create new revenue streams for AD operators through GGR allowance sales in the UK ETS. We anticipated increased investments in AD technology, driven by clearer market signals, and greater recognition of AD’s multiple environmental benefits beyond carbon removal. By offering multiple access points to the ETS allowances smaller operators should find it easier to participate in carbon markets.
The future looks green, and it’s powered by AD!
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