What the Government’s preferred options are for structural reform of the EU emissions trading system.

The UK supports urgent reform of the EU ETS including through cancellation of an ambitious volume of surplus allowances. We are also examining other options to deliver our climate goals.

I thank the Minister for that response and I strongly welcome the role the UK played in securing a positive vote in favour of backloading in the European Parliament last week. May I urge Ministers to ensure that the UK continues to show strong leadership in strengthening the ETS and tackling the enormous over-supply of allowances?

I can assure my hon. Friend that that is exactly what we are doing, and we will continue to press for a higher level of ambition in Europe on a 2020 target as well.