UK issues CO2 permit free list for aviation

The British government has published a list of the number of free UK carbon permits each aircraft operator will receive from 2021-2025, reported Reuters on Tuesday.

This list comes under the UK's domestic emissions trading system (ETS), a method of charging power plants and other industrial entities for each tonne of carbon dioxide they emit.

Under these guidelines, some installations and aircraft operators can get free emissions permits to reduce the risk of businesses transferring their activities to other countries due to climate costs.

The government said that the free permits for the 2021 scheme year will be allocated to operator holding accounts in the UK ETS registry in the coming weeks, following administrator approvals. 

Britain launched its own ETS to replace the European Union's ETS after it left the bloc. Under this scheme, companies operating in certain sectors can trade emission allowances which are known as carbon credits.

On May 19, 2021, Intercontinental Exchange, Inc. (ICE) hosted the British scheme’s first emission allowance auctions on behalf of the government.

This scheme helps the government to reduce greenhouse gas emissions to net-zero by 2050; as they previously announced in 2019. The UK's ETS applies to energy intensive industries, the power generation sector and aviation.