Source · Select Committees · Environmental Audit Committee
Recommendation 12
12
Paragraph: 71
The UK and EU have agreed to consider linking the UK and EU ETS systems,...
Conclusion
The UK and EU have agreed to consider linking the UK and EU ETS systems, which would exempt UK producers from the EU’s CBAM (and vice versa), simplifying administrative processes for UK-EU trade; as linking can be a lengthy process, it is important for exploratory work to commence on this now. This may also be a welcome sign that there is a political recognition on both sides that linkage of CBAM schemes in due course could be achievable.
Paragraph Reference:
71
Government Response
Acknowledged
HM Government
Acknowledged
The Government is open to linking the UK ETS internationally in principle and is considering a range of options. No decision on any preferred linking partners has yet been made. Under the Trade and Cooperation Agreement (TCA) the UK and EU have agreed to give serious consideration to linking their respective carbon pricing systems. Cooperation and dialogue on carbon pricing, including by considering linking, will continue to be important as both parties strive to deliver ambitious climate targets.