FPC Guidance - UK Emissions Trading Scheme

The Emissions Trading Scheme (ETS) is a market-based policy that puts a price on greenhouse gas emissions by requiring major emitters to hold allowances for each tonne of CO₂ they produce.

In the UK, the ETS primarily affects energy producers, fertiliser manufacturers, glasshouses using fossil fuels, cold storage, and transport-linked costs rather than most growers directly. For the fresh produce industry, the ETS indirectly raises input prices such as energy, fertilisers, packaging, and logistics. This increases production costs, encourages efficiency and low‑carbon alternatives, and strengthens the commercial case for renewable energy, resource efficiency, and supply chain decarbonisation.

FPC members can access a guidance document below to further support their understanding of how the ETS indirectly affects the fresh produce industry.