On 26 February 2021, Intercontinental Exchange (ICE) announced the calendar for allowance auctions under the recently launched UK ETS. The bi-weekly auctions for UK Allowances (UKAs) will start on 19 May 2021.

ICE will host the auctions and will also launch UKA futures contracts on the same day. The British government plans to sell a total of 83 million UKAs during 2021.

The auctions will feature an auction reserve price, which is set at GBP 22 (USD 28.21) per ton. Any unsold allowances will be made available in the next four auctions, up to 125% of those originally intended for sale at that auction. In cases where all four subsequent auctions reach the 125% limit, the remaining unsold allowances will be transferred into a reserve.

The UK ETS came into operation on 1 January 2021 when the EU ETS ceased to apply to UK installations following Brexit. UK entities must still comply with their obligations under the EU ETS for their 2020 emissions.