Tighter restrictions on business emissions

Article posted

14th Jul 2023

Read time

2-4 min read


Mollie Pinnington

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The government is expected to start tightening limits on greenhouse gas emissions from businesses within energy-intensive industries and the aviation sector.

This decision was announced by the UK Emissions Trading System Authority (ETS). This will reinforce the role of the nation as a global leader in decarbonization.

The ETS will cap the amount of greenhouse gases that certain businesses can emit. This will make these industries move away more quickly from fossil fuels. Hopefully, This will also spur more industries to invest in energy-efficient and renewable technology.

These new measures give businesses a clear need to invest in long-term decarbonisation to support the transition. Although the cap will need to be met by certain companies it will be set at the highest level within the net zero range which will offer maximum flexibility for industries.  Ensuring companies have a certain amount of flexibility available will stop businesses from facing international pressures.


Why is this becoming more important?

The ETS has said with the recent energy crisis, it has never been more important to accelerate the transition away from fossil fuels, which are a lot more costly than cheaper renewable alternatives.

Businesses need to think of the long-term sustainability of the company. That is not going to be possible without having a strategy and long-term framework to decarbonize all operations within the company.

The clean energy sector is set to rapidly expand over the next few years, giving businesses huge opportunities for businesses in the UK to invest in new green technology.


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