UK & EU agree on ETS Linkage
Yesterday, Monday 19th May, the UK and the EU met to discuss progress on linking their Emission Trading Systems (ETS).
The European Commission and the UK share a strong commitment to establishing a functioning link between their carbon markets. This linkage aims to address trade issues, ensure a level playing field, and enable both parties to maintain ambitious environmental goals consistent with their international obligations.
Key points of the proposed UK-EU ETS link include:
Mutual exemptions from Carbon Border Adjustment Mechanisms for goods originating in both jurisdictions, subject to compliance with relevant legislation.
Coverage of key sectors such as electricity generation, industrial heat, industry, maritime and aviation transport, with scope to expand further.
Dynamic alignment of UK rules with EU ETS regulations while respecting the UK’s constitutional and parliamentary processes.
Ambitious emissions caps aligned with the UK’s Climate Change Act and EU targets.
A joint governance mechanism and an independent dispute resolution process with the EU Court of Justice as the ultimate authority on EU law.
This proposed agreement represents a significant step in strengthening UK-EU climate cooperation and fostering a more integrated and resilient carbon market.
At Grey Epoch we are here to help you understand the implications of this proposal and answer any questions you may have. Get in touch to learn more about how this could impact your business.