Emissions Report 2022

Figure 14 UK ETS historic prices Source: ICIS, OEUK

120

UK ETS £/tonne

100

80

60

40

20

0

Jul-21

Jul-22

Jan-22

Jun-22

Oct-21

Apr-22

Sep-21

Feb-22

Sep-22 Source: ICIS, OEUK

Dec-21

Aug-21

Aug-22

Nov-21

Mar-22

May-22

UK Emissions Trading Scheme Carbon pricing will continue to be the central tool to incentivise emission reduction in the oil and gas sector and the wider economy. UK ETS prices have remained at relatively elevated levels during 2021-22, a little higher than the EU scheme of which it was once a part ( see Figure 14 ). This provides a strong signal to operators and the wider economy with increased focus on the role of ETS on individual balance sheets.

OEUK remains supportive of the ETS although there is a continued need to prevent carbon leakage – shifting industrial activity abroad where emissions regulations are much laxer. Extension of the scheme to other greenhouse gases and methane in particular appear premature, especially as industry is already taking strong action in this regard.

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EMI SS IONS REPORT 2022