Manufacturing & Engineering

Meet your environmental permit and emissions trading duties

If you run a cement, lime, glass or ceramics kiln or furnace, your installation needs an environmental permit, and cement, lime and glass production fall within the UK Emissions Trading Scheme. This guide takes you through the installation permit and your greenhouse-gas monitoring, reporting and allowance duties.

UK-wide
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UK-wide

Energy-intensive mineral processing — the kilns and furnaces used to make cement, lime, glass and ceramics — is regulated for its emissions to air, water and land, and for its greenhouse gases. Two regimes apply, both overseen by the environmental regulators rather than the HSE: an installation permit that controls your emissions, and the UK Emissions Trading Scheme for the carbon dioxide your process releases. Work out whether each applies to your installation, then put both in place.

A. Get your environmental permit

Cement and lime kilns, glass and ceramic furnaces and similar installations are listed activities that need an environmental permit before they operate. The permit sets emission limits and operating, monitoring and reporting conditions, and for the larger installations applies best-available-techniques standards. In England the regulator is the Environment Agency and in Wales Natural Resources Wales, under the Environmental Permitting (England and Wales) Regulations 2016; in Scotland the regulator is SEPA and in Northern Ireland the Northern Ireland Environment Agency, under their equivalent pollution prevention and control regimes. Apply for the right permit — standard rules or bespoke — for your installation and nation, and keep to its conditions.

B. Meet your UK Emissions Trading Scheme duties

Cement (clinker) production, lime production and the manufacture of glass are energy-intensive activities within the UK Emissions Trading Scheme (UK ETS), and the firing of ceramic products above a capacity threshold can be in scope too. If your installation is in scope you need a greenhouse gas emissions permit, and you must monitor your emissions to an approved monitoring plan, report your verified emissions annually, and surrender allowances to match them. Eligible installations receive a free allocation of allowances each year to manage the risk of carbon leakage, with the free allocation declining over time. The scheme operates UK-wide and is administered jointly by the Environment Agency, SEPA, Natural Resources Wales and the Northern Ireland regulator, with the Department for Energy Security and Net Zero. Note that the scheme is evolving — including the planned move to the next allocation period and alignment with the UK Carbon Border Adjustment Mechanism — so check the current rules and dates that apply to your installation.

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    1. Check whether your installation needs an environmental permit

    Confirm whether your kiln or furnace is a listed activity, then apply for the right permit (standard rules or bespoke) from the regulator for your nation — the Environment Agency, NRW, SEPA or NIEA.

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    2. Operate to your permit conditions

    Meet the emission limits and the operating, monitoring and reporting conditions in your permit, and keep the records it requires.

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    3. Check whether you are in the UK Emissions Trading Scheme

    If you produce cement clinker, lime or glass above the scheme's thresholds, apply for a greenhouse gas emissions permit and set up an approved monitoring plan.

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    4. Monitor, report and surrender allowances

    Monitor your emissions, report verified emissions annually, surrender allowances to match, and claim your free allocation where you are eligible. Check the current allocation period and rules.

What to do next

With your safe-factory spine and your environmental and emissions duties in place, confirm the whole picture with the compliance checklist. If you also place products on the market, follow Place non-metallic mineral products on the market. Start from the router if you are not sure which guides apply to you.

Non-metallic mineral products manufacturer: compliance checklist

Use this checklist to confirm your non-metallic mineral products business (SIC division 23) meets its obligations before a production run. Work through the universal workplace items every manufacturer shares, then the sections for placing products on the market and for environmental permits and emissions trading. If you answer no to any item, follow the linked guide before you proceed.

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