This Analyst Note by cCarbon delves into the demand-supply outlook for the UK Emission Trading Scheme (UK ETS) spanning till 2030. It outlines the policies and targets aimed at decarbonizing various sectors regulated under the UK ETS and analyses their impact on the UK ETS market dynamics till 2030. The first part of this note offers insights into the decarbonization policies and targets of power, industry as well as aviation sectors, including recent regulatory changes in the UK ETS which are anticipated to influence near or medium-term supply of allowances. The second part shows the estimated impact of these policies on the UK ETS emissions, supply, allowance demand, and surplus across two scenarios.

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