<p>Industrial participants in the UK ETS are provided with free allocations, reducing their exposure to the carbon price and mitigating the risk of carbon leakage. In a recent consultation the Government guaranteed free allocations at current levels until 2026, and as part of an ongoing review is looking at how to target support to sectors most at risk of carbon leakage. The UK ETS Authority will publish a response to the March 2022 consultation in due course.</p><p> </p><p>The Government is also consulting on wider carbon leakage mitigations such as a carbon border adjustment mechanism and mandatory product standards.</p>