In this episode of ICAP’s Carbon Market Conversations, host Trevor Laroche-Theune takes us on a deep dive into the UK ETS with Hannah Lewis, Head of UK ETS Policy and International Engagement with the UK Department for Energy Security and Net Zero and Sam Reed, Head of UK ETS Scope Expansion with the UK Department for Business, Energy and Industrial Strategy. Today’s conversation focuses on the UK ETS’s founding objectives and how it has developed since its inception, what to expect from the upcoming scope expansions, how it is preventing carbon leakage, plans for including engineered removals, and how it aligns with the UK’s broader climate goals. A more detailed breakdown of the topics explored and where you can listen to them is listed below.0:55 - Introduction to today’s topic and our guests, Hannah Lewis and Sam Reed of the UK ETS Authority3:10 - Introduction the UK ETS and its founding objectives6:40 - Early challenges and opportunities transitioning from the EU ETS9:20 - Significant developments since its launch: reduction of the cap, reduction of free allocation for industrial sectors, and announced plans to phase out free allocation for aviation, expand the ETS scope, and include GHG removals12:20 - Similarities and differences with the EU ETS14:00 - Rationale for scope expansions to maritime, waste incineration, and waste-to-energy sectors, and who expansions apply to17:15 - Expectations for the scope expansions and challenges encountered21:30 - Steps being taken to resolve challenges and recommendations for other jurisdictions that go through similar expansions23:45 - Expectations for further scope expansions in the future26:00 - Carbon leakage prevention - shifts in free allocation policy and the UK CBAM32:50 - Plans for including engineered removals and the role they will play34:50 - Making up the price difference for engineered removals to become an effective solution36:30 - UK ETS alignment with the UK’s broader climate goals39:40 - Outlook under the Starmer Government41:00 - Key challenges that the UK ETS must get right in the coming years, and what steps can be taken toward their resolution46:25 - Closing remarksMore information about ICAP and the UK ETS can be found here:https://icapcarbonaction.com/en/ets/united-kingdomFurther informative UK ETS resources mentioned in the episode:https://www.gov.uk/government/publications/uk-emissions-trading-scheme-long-term-pathway/the-long-term-pathway-for-the-uk-emissions-trading-schemehttps://www.gov.uk/government/consultations/developing-the-uk-emissions-trading-scheme-uk-ets