<p>The UK Emissions Trading Scheme (UK ETS) incentivises industries to find the most cost-effective solutions to decarbonise, enabling green growth. Industrial participants in the UK ETS, including those in the ceramics sector, are provided with free allocations reducing exposure to the carbon price and mitigating carbon leakage risk.</p><p> </p><p>The Government has guaranteed free allocations at current levels until 2026, and as part of an ongoing review will look to target support more effectively to sectors most at risk of carbon leakage. The Government is consulting on wider carbon leakage mitigations such as a carbon border adjustment mechanism and mandatory product standards.</p>