Energy Fuels and Vehicles Working Party: Shaping the UK Road Transport Emission Trading Scheme (ETS) Meeting notes March 18, 2025

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Jason Airey

0 minutes 4 seconds0:04

Jason Airey 0 minutes 4 seconds

Hi everybody. Welcome.

Jason Airey 0 minutes 7 seconds

To the energy, fuels and vehicles working part of the Westminster Rd. Air quality. Can I ask everybody to put their their cameras on? It’s always nice to see everybody’s faces, absolutely.

Jason Airey 0 minutes 31 seconds

Super. Well, I’ll let Sally kick off with protocols and then we will commence the meeting. The meeting. OK. Good afternoon and welcome everybody. It’s lovely to see so many nice faces. Just a quick run through of the protocol. So first of all, what we’re going to do is we’re going to run through the updates of the committee, meet you a little notice that if you can keep your video on and you can keep your microphones off, please.

Jason Airey 0 minutes 58 seconds

Then we can see you, but if you have the opportunity to ask a question.

Jason Airey 1 minute 3 seconds

We’ll be able to invite you at the end of the presentation.

Jason Airey 1 minute 7 seconds

So if everybody could do that, if you’ve got a question, you can type it in the chat facility if you prefer or you can put your hand up. So that’s the easiest way of managing that. And so therefore I see we’ve got Barry with us today. Hi, Barry. Welcome. Good to see you. So I’m going to ask you just to give us a quick update on where we are with the Westminster Commission.

B

Barry

1 minute 32 seconds1:32

Barry 1 minute 32 seconds

You can give your update now turned it on. Oh, Are you ready for me?

JA

Jason Airey

1 minute 41 seconds1:41

Jason Airey 1 minute 41 seconds

You’re on.

B

Barry

1 minute 41 seconds1:41

Barry 1 minute 41 seconds

Oh, OK. Well, I didn’t realise that we were going to. I was going to be so close on the to the top of the agenda. OK, so.

Barry 1 minute 52 seconds

My report is any of you who are down in Cardiff with us, you can now switch off and come back in three or four minutes.

Barry 2 minutes 1 second

Because what I was saying is.

Jason Airey 17 minutes 37 seconds

Is to understand who’s got the best, but ideally who’s the top ten worst constituencies in terms of air pollution in the UK and then obviously approach those MPs and see if they’re interested in obviously trying to reduce that problem and and how they could help. So I think there’s lots of stuff we can do there, you know, consolidate our objectives, but also understand, you know, if we look at the, it’s interesting you mentioned.

Jason Airey 18 minutes 2 seconds

Leeds University Barry yeah, because obviously James Tate, who does a lot of work for Defra on air pollution out at Leeds out of Leeds.

Jason Airey 18 minutes 9 seconds

Said that, you know to introduce the test on DP FS and the effect of taking those vehicles off the road is probably the number one biggest thing we can do today. Yeah. To reduce obviously pollution from Rd transport. Yeah. So you know, it’s within our visibility to try and push that through as quickly as possible. And that’s really key. So lots going on.

Jason Airey 18 minutes 34 seconds

I think the.

B

Barry

18 minutes 34 seconds18:34

Barry 18 minutes 34 seconds

Jason, can I come in on that point?

JA

Jason Airey

18 minutes 36 seconds18:36

Jason Airey 18 minutes 36 seconds

Yes.

B

Barry

18 minutes 37 seconds18:37

Barry 18 minutes 37 seconds

I was coming out before I was. I was muted. But the fact of the matter is, you’re absolutely right about we now can say to a Member of Parliament or a city or town. This is, yeah, a pretty accurate evaluation of where you are in terms of your air quality.

Barry 18 minutes 56 seconds

But also developing as we have in Oxford and we’re trying it in other Cambridge and other towns going to them because you know.

Barry 19 minutes 6 seconds

As I said again in Cardiff, you know local authorities have been battered and bruised over so many years with the lack of resources, you know they just haven’t got resources. They are really on their so many of them and so well, our approach is now to go say, well, what about a new sort of partnership we said to Oxford, look, you’ve got universities, you’ve got 2 universities.

Barry 19 minutes 31 seconds

It also then you’ve got 7 loads of colleges Cambridge the same. Do you want your students and your staff?

Barry 19 minutes 39 seconds

To be working in a poisonous atmosphere, do you want and your major employers? Do they want the same? And So what we’ve been encouraging is a partnership approach, a sharing of the load. If you if the universities. If local businesses are at the big employers worried about the atmosphere in which they all work and live.

Barry 20 minutes 4 seconds

Then it’s a partnership to find the resource to do something about it, to measure it, and then do something about it. So.

Barry 20 minutes 11 seconds

So we’re, we’re we’ve gone from the, you know, one club you go in and you can see what counsellors I was a counsellor for seven years and in the days when we had money and now I can’t understand what anybody would want to become a counsellor, where there was never any money. It’s always cutting services. So our partnership saying, come on in this town, you could get these people together and then get a kind of, yeah, we stop frightening, you know, people by saying oh, it’s going to land.

Barry 20 minutes 41 seconds

But our desk and we will foot the bill. So I think we’ve been helpful in developing that sort of policy, Jason.

JA

Jason Airey

20 minutes 51 seconds20:51

Jason Airey 20 minutes 51 seconds

I think you know it’s, you know, Jude picked up on the APPGS we we don’t want to just talk about it. We you know we want to know what’s happening and I think you know it’s nice that we’ve now got obviously the MPs back on board since things have settled down actually are going out and actually saying right what can we see to happen there. And I think with you know Rosalind as well is great because she’s you know she’s been waving the flag as she’s done a lot of work in Europe for example.

Jason Airey 21 minutes 16 seconds

She was actually a keynote speaker in one of the the European European companies, and you know the the key thing for us is all about.

Jason Airey 21 minutes 25 seconds

You know, working with Rosmond as well, and you know she’s got an introduction to clean F and for, as Barry hasn’t she to try and work out how we move that forward, which is good. So lots going on what we know to do then what I’ll do now is I’m going to introduce forensio curvio forensio has been I think we met many years ago ferenzio yeah so and we’ve done a lot of work together on off in certain areas.

Jason Airey 21 minutes 51 seconds

We sort of discussed certain topics.

Jason Airey 21 minutes 55 seconds

And one of the areas that we’re we’re very passionate about really is how do we generate more investment in, you know, fuel, clean, air technologies, energy. Yeah. Where where’s that money come from? And I think if you said, Barry, the problem is, is that there’s no money in the local authorities, there’s not a lot of money in central government. Yep. So where’s it going to come from? So what are those mechanisms? Help you make them happy. Happens. All right. In terms of frenzy, I’m not going to go through your whole bio frenzy does go on a bit, but.

Jason Airey 22 minutes 23 seconds

Frenzo’s, the leading expert in transport decarbonisations emissions trading, energy transition advise governments, industries, frameworks that Dr sustainable mobility and I think that’s a good summary really.

Jason Airey 22 minutes 36 seconds

You’re very passionate friends as well about obviously, how do we transition to these, you know, 0 emission technologies and it’s kind of key, how do we do that? So I’m going to pass every forensia to go through the mission training systems.

F

Florencio Cuervo LEVE MOBILITY

22 minutes 52 seconds22:52

Florencio Cuervo LEVE MOBILITY 22 minutes 52 seconds

OK. Thank you. Thank you for your words and very interesting the introduction from Barry and focus you you you mentioned both of you.

Florencio Cuervo LEVE MOBILITY 23 minutes 3 seconds

So let me share my screen so we I can use it.

Florencio Cuervo LEVE MOBILITY 23 minutes 10 seconds

The vehicle for for the speech.

Florencio Cuervo LEVE MOBILITY 23 minutes 14 seconds

Confirm if you have it.

Florencio Cuervo LEVE MOBILITY 23 minutes 21 seconds

OK. Oh, I see it. So I think you, you too.

JA

Jason Airey

23 minutes 24 seconds23:24

Jason Airey 23 minutes 24 seconds

Yep, we can see that friends here.

F

Florencio Cuervo LEVE MOBILITY

23 minutes 26 seconds23:26

Florencio Cuervo LEVE MOBILITY 23 minutes 26 seconds

OK.

Florencio Cuervo LEVE MOBILITY 23 minutes 28 seconds

So.

Florencio Cuervo LEVE MOBILITY 23 minutes 30 seconds

Our interest is to open a space where meaningful a meaningful goal of stakeholders approach from different angles. The upcoming expansion of the UK Emission Trading scheme to the road transport and buildings as well.

Florencio Cuervo LEVE MOBILITY 23 minutes 49 seconds

And we aim to address technical and policy topics in collaborative efforts, which are needed between government and industry to ensure.

Florencio Cuervo LEVE MOBILITY 24 minutes

Its successful implementation.

Florencio Cuervo LEVE MOBILITY 24 minutes 2 seconds

So we will explore the policy framework, a background regulatory changes venture as well in alternative ways. We can do the UK Rd transportation emission trading scheme and find the risk and highlight opportunities as well.

Florencio Cuervo LEVE MOBILITY 24 minutes 24 seconds

You will also remark the importance of the partnership approach.

Florencio Cuervo LEVE MOBILITY 24 minutes 41 seconds

And we will divide in three chapters this short presentation.

Florencio Cuervo LEVE MOBILITY 24 minutes 55 seconds

The first one will incorporate the ETS policy framework.

Florencio Cuervo LEVE MOBILITY 25 minutes 2 seconds

And explain how it gears up and what it means for you.

Florencio Cuervo LEVE MOBILITY 25 minutes 12 seconds

The basics is that there is a ETS policy framework within which it’s a fall into the UK. Participation in the European Union ETS emission trading scheme, which was established in 2005, was replaced after Brexit with the UKETS on January the 1st 21.

Florencio Cuervo LEVE MOBILITY 25 minutes 34 seconds

The scheme considered the emissions in the production upstream and distribution downstream of fuels.

Florencio Cuervo LEVE MOBILITY 25 minutes 43 seconds

But in the context of ETS through downstream.

Florencio Cuervo LEVE MOBILITY 25 minutes 50 seconds

Downstream, it means from the tongue to wheel or pipe to burner so that we will explain a bit better what it means upstream and downstream in this case.

Florencio Cuervo LEVE MOBILITY 26 minutes 1 second

Germany included in from 2021 and ETS apply also applying to Rd transportation fuels, so not to the.

Florencio Cuervo LEVE MOBILITY 26 minutes 12 seconds

Companies as responsible.

Florencio Cuervo LEVE MOBILITY 26 minutes 15 seconds

The current introduction of new markets in the EU in the European Union develops the case for fuels, for buildings and for Rd transport that so the regulated entity defined is not the consumer. The road transportation operation, but the fuel supplier to these operators.

Florencio Cuervo LEVE MOBILITY 26 minutes 37 seconds

Regulated event is a release for consumption of a stream of fuel. When you put it in the tank.

Florencio Cuervo LEVE MOBILITY 26 minutes 46 seconds

Because of this, it was called up upstream and nicknamed ETS2, so the original downstream is now rebranded ETS downstream in the ETS aspect means the consumer.

Florencio Cuervo LEVE MOBILITY 27 minutes 14 seconds

The the UK is now a studying the expansion of the UKETS to new markets, expansion to new markets. This is within the policy and the road transportation sector is one of the markets as well as the building sectors which were not applying to the ETS1 scheme, not downstream. So in these cases.

Florencio Cuervo LEVE MOBILITY 27 minutes 39 seconds

The European Commission is.

Florencio Cuervo LEVE MOBILITY 27 minutes 43 seconds

Having the fuel suppliers.

Florencio Cuervo LEVE MOBILITY 27 minutes 46 seconds

Taking the responsibility to report the emissions downstream.

Florencio Cuervo LEVE MOBILITY 27 minutes 55 seconds

So in the context of EDS, downstream means tank to whale or pipe to burn.

Florencio Cuervo LEVE MOBILITY 28 minutes 2 seconds

I can share later on some.

Florencio Cuervo LEVE MOBILITY 28 minutes 7 seconds

Interesting links if you are curious enough on what is.

Florencio Cuervo LEVE MOBILITY 28 minutes 19 seconds

Now they to to explain a bit how it works.

Florencio Cuervo LEVE MOBILITY 28 minutes 24 seconds

That you you KETSS scheme comes from there is an inter at the beginning, the UK took an undertaking to cut its emissions and set it out in the national determined contributions. This is the architecture of what we are speaking. So the UK agreed in the COP 15.

Florencio Cuervo LEVE MOBILITY 28 minutes 49 seconds

And it was turned into low.

Florencio Cuervo LEVE MOBILITY 28 minutes 53 seconds

Into a series of legally binding limits called carbon budgets, so every country.

Florencio Cuervo LEVE MOBILITY 29 minutes 1 second

Committed their not every but most of the country in the world committed to an NDC national determined contributions meaning.

Florencio Cuervo LEVE MOBILITY 29 minutes 11 seconds

A limit to their carbon emissions during from from the day 1990 onwards to 2050.

Florencio Cuervo LEVE MOBILITY 29 minutes 25 seconds

So the UK set it it into a bill in the Climate Change Act in 2002 and 8.

Florencio Cuervo LEVE MOBILITY 29 minutes 35 seconds

And.

Florencio Cuervo LEVE MOBILITY 29 minutes 36 seconds

This converted the NDC into carbon budgets.

Florencio Cuervo LEVE MOBILITY 29 minutes 42 seconds

The this match at SPC 5 the maximum amount of greenhouse gases the UK can emit over a set of period for all sectors.

Florencio Cuervo LEVE MOBILITY 29 minutes 53 seconds

Capped year on year, the carbon budget limit the basis for the overall caps in the caps and trade system, which in turn determine will determine how many allowances each sector each market will receive.

Florencio Cuervo LEVE MOBILITY 30 minutes 11 seconds

In some cases, free allowances not in this case or by by auction and every year will be cut.

Florencio Cuervo LEVE MOBILITY 30 minutes 21 seconds

In proportion with the carbon budget, the on on the on the Climate Change Act of the UK. So then the road transport ETS is an emission cap and trade scheme CAP and trade means the government caps but goes reducing the amount it could be emitted to the atmosphere and.