UK Emissions Trading Scheme: ministerial directions to the regulators
Summary
DESNZ has issued ministerial directions under section 52 of the Climate Change Act 2008 covering three UK ETS matters: defining eligible fuels for maritime operators making emissions reduction claims under Schedule 2A paragraph 37, setting penalty levels for installation operators with permits under article 50(4), and penalties for ultra-small emitters exceeding thresholds under article 60(6). The penalty directions have been in force since October 2023; the maritime fuel eligibility direction references EU renewable energy and waste directives as at April 2026. Parallel directions have been issued by devolved governments.
Why it matters
These are administrative housekeeping directions within the UK ETS framework, not structural changes to carbon pricing or electricity market design. The maritime fuel definition may matter for shipping decarbonisation but has no direct impact on the electricity system.
Key facts
- •Directions issued under section 52 of the Climate Change Act 2008
- •Penalty directions under articles 50(4) and 60(6) in force since 6 October 2023
- •Maritime eligible fuel definition references EU Directive 2018/2001 (renewables) and Directive 2008/98/EC (waste) as at 1 April 2026
- •Parallel directions issued by Northern Ireland, Scotland, and Wales
Areas affected
Related programmes
Memo
Ministerial directions from the Secretary of State Definition of an eligible fuel for the purposes of maritime operators making an emissions reductions claim – paragraph 37 of Schedule 2A Direction under section 52 of the Climate Change Act 2008 (the Act) in contemplation of paragraph 37(1)(a) of Schedule 2A to the Greenhouse Gas Emissions Trading Scheme Order 2020 (the Order) Versions of the European directives referred to in the above direction (as at 1 April 2026) are available below: Directive (EU) 2018/2001 of the European Parliament and of the Council on the promotion of the use of energy from renewable sources Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on waste and repealing certain Directives Penalties for installation operators operating with a permit - article 50(4) Direction under section 52 of the Climate Change Act 2008 pursuant to article 50(4) of the Greenhouse Gas Emissions Trading Scheme Order 2020 - in force 6 October 2023 Penalties for ultra-small emitters that have failed to notify that their emissions have exceeded the maximum permitted amount - article 60(6) Direction under section 52 of the Climate Change Act 2008 pursuant to article 60(6) of the Greenhouse Gas Emissions Trading Scheme Order 2020 - in force 6 October 2023 Further details Other governments of the UK have issued similar directions to their respective regulators. Publication for Northern Ireland Publications for Scotland paragraph 37 of Schedule 2A article 50(4) article 60(6) Publications for Wales article 50(4) article 60(6)