techUK Responds to Consultation to Extend UK ETS Beyond 2030
The consultation by the UK Emissions Trading Scheme (ETS) Authority sought stakeholder feedback regarding whether to extend the Scheme beyond 2030 and for how long, and whether to allow banking of emissions allowances between Phase I and a post-2030 Phase II.
In the response, techUK welcomed Government’s commitment to net-zero while highlighting that the inclusion of data centres in the UK ETS does little to advance overall decarbonisation goals.
Data centres are included in the UK ETS due to the capacity of their on-site backup power generation, which acts as emergency backup in the unlikely event of grid failure. The majority of emergency generators are test fired regularly but rarely deployed. The energy source for data centres is electricity, not combustion of fuel. The scale of emissions associated with data centre operation is therefore small.
Given this mismatch, techUK recommended Government reevaluate the inclusion of data centres in the UK ETS as it considers an extension beyond 2030. An exemption would support the continued growth of this essential sector and align neatly with Government’s ambition to reduce red tape and support growth.
techUK will keep members updated on developments.
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Craig Melson
Craig is Associate Director for Climate, Environment and Sustainability and leads on our work in these areas ranging from climate change, ESG disclosures and due diligence, through to circular economy, business and human rights, conflict minerals and post-Brexit regulation.

Josh Turpin
Josh joined techUK as a Programme Manager for Telecoms and Net Zero in August 2024.
Alec Bartishevich
Alec joined techUK in 2025 as the Programme Manager for Sustainability within the Climate, Environment, and Sustainability Programme.

Lucas Banach
Lucas Banach is Programme Assistant at techUK, he works on a range of programmes including Data Centres; Climate, Environment & Sustainability; Market Access and Smart Infrastructure and Systems.