[3] Although initially somewhat similar to the earlier UK participation in the European Union Emission Trading Scheme (EU ETS),[2] there are differences.
[1] The UK ETS is initially limited to internal flights, electricity generation and industries which use a lot of energy: but the scheme will be expanded.
In return they received a share of a £215 million "incentive fund" from the Department for Environment, Food and Rural Affairs (DEFRA).
[4] From March 2002, DEFRA ran an auction of emission allowances to perform allocations to participants, after the start of the mandatory EU scheme.
The UK's National Audit Office[5] and DEFRA's consultants[6] ran reviews of the system in order to establish its basis and drew lessons from it.