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ETS Compliance

Make smarter carbon allowance buying decisions, reducing your ETS compliance costs

An award-winning team of carbon market experts, ready to support your risk management strategy.

Your team of ETS compliance specialists

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We specialise in supporting UK and EU Emissions Trading Scheme (ETS) operators across the industrial, aviation, and shipping sectors.

With CFP Energy, you can navigate complex regulations, manage allowance purchases and reduce exposure to market volatility through bespoke compliance strategies.

    Tim Atkinson, Head of Carbon

    "For companies covered by the EU Emissions Trading Scheme (ETS) and UK ETS, a paradigm shift is on the horizon. Both schemes are going through significant reform which will increase ambition and tighten the scheme targets to 2030 and beyond, as well as politicians exploring a possible link in the future.

    Industrial and aviation operators will see a reduction in free allocations and shipping requirements increase to 100% by 2026. This means every company will need to purchase more allowances at a time of forecast prices rises"

     

    The solution CFP Energy provides

    Get concise updates on global and local policy as well as regular market insights to keep you up to date with carbon price movement, supporting your risk management strategy.

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    CFP Energy’s bespoke risk management solutions build on our experience of working with 1,000+ ETS operators over the past 15 years.

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    Reduce your compliance costs and develop a tailored strategy that takes into account procurement rules, budget requirements and your appetite for risk.

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    Immediately access short-term carbon allowances to comply with fast-approaching deadlines or develop a long-term strategy.

    The ETS compliance challenge

    Regulatory changes are forecast to increase future allowance prices and require new abatement technologies to achieve future emissions reduction targets. However, whilst decarbonisation plans remain on the drawing board, an effective allowance purchasing strategy is needed in the meantime.

    Decarbonisation

     

    You may be seeking carbon abatement opportunities to reduce ETS covered emissions, but do you have the technology and financing?

     

    Budgeting

     

    If technology and capital investment are not available, you will need to budget for higher compliance costs in the future, but can your business afford significant increases?

    Carbon Risk Management

     

    By working with CFP Energy, you can take advantage of favourable allowance prices and use carbon market solutions to proactively manage and reduce future ETS compliance costs.

    Leading ETS strategy and support

     

    Our award-winning team offers a full range of risk management solutions, including spot and forward allowance transactions, market orders to take advantage of sudden price movements and innovative products to manage future carbon price risk and reduce compliance costs.

    The ETS timeline...

    Significant changes are on the horizon for a number of industries across the UK and Europe.

    ETS Timeline

    Decarbonising the Future: Navigating ETS Reforms & Net Zero Solutions

    This report draws on data from a comprehensive survey conducted by CFP Energy across large-scale organisations in the UK, Germany, and France.

    With insights from industries including aviation, data centres, shipping, construction, and manufacturing, the report highlights emerging strategies, investments, and the regulatory pressures driving the need for carbon reduction.

    ETS compliance insights

    Connect with our team

     

     

     

    Tim Atkinson

    Head of Carbon

    Connect with our team

    ETS FAQs

    An ETS strategy helps businesses manage carbon emissions, reduce compliance costs, and avoid penalties. It allows for smart planning in carbon trading, aligning with climate regulations and boosting sustainability reporting. With rising carbon prices and stricter environmental laws, a strong ETS strategy supports long-term competitiveness, risk management, and ESG goals—making it essential for any company aiming to thrive in a net-zero economy.
    A carbon compliance market is a government-regulated system requiring companies to measure and offset carbon emissions. Businesses must hold enough carbon allowances or buy carbon credits to cover emissions. Markets like the UK ETS and EU ETS use cap-and-trade schemes to lower national emissions. These markets incentivise low-carbon practices, set a carbon price, and are critical tools for meeting climate targets under international agreements like the Paris Agreement.
    Carbon credits represent one tonne of CO₂ emissions or equivalent gases. Companies buy credits to offset emissions or meet carbon compliance requirements. If a company emits less than allowed, it can sell surplus credits; if it emits more, it must buy additional credits. This system encourages emissions reductions and supports investment in green technologies. Carbon credits are key in both voluntary carbon markets and regulated schemes like the UK ETS.
    Carbon credits are issued by government bodies in regulated markets (e.g., UK ETS, EU ETS) and by certified organisations in voluntary markets. Leading standards include Verra, Gold Standard, and Climate Action Reserve. These issuers certify emissions reductions from renewable energy, reforestation, and carbon capture projects. Verified carbon credits ensure transparency, traceability, and climate impact, making them essential for credible carbon offsetting and compliance in carbon markets.
    Carbon credits are permits that allow companies to emit one tonne of CO₂ or equivalent. Used in carbon trading, they help meet emissions reduction goals. Credits can be traded in compliance markets (e.g. UK ETS) or voluntary carbon markets. By buying credits, companies offset emissions by funding projects like reforestation, renewables, or methane capture, making carbon credits a key tool in the fight against climate change.