Select committee: Business, Innovation, Science and Trade Committee
Recommendation 14
6th Report – How to strengthen UK-EU relations: Policy Priorities for the Summit
Published 15 May 2025
Addressed to Department for Business and Trade
Business, Innovation, Science and Trade Committee Export led growth All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
To prevent the UK and EU’s respective Carbon Border Adjustment Mechanism schemes from becoming barriers to trade in electricity and carbon- intensive goods, when doing so maximises export potential and reduces consumer costs, the Government should seek to link, and keep aligned, the UK Emissions Trading Scheme with the EU Emissions Trading Scheme. The Government should ensure action is in place to mitigate any impacts while the EU’s Carbon Border Adjustment Mechanism is in place and the UK’s is not. (Recommendation, Paragraph 66)
From: Business, Innovation, Science and Trade Committee, 6th Report – How to strengthen UK-EU relations: Policy Priorities for the Summit (HC 908), 15 May 2025
Government response
The government responded to the whole report on 5 September 2025 (deadline 15 July 2025).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government's response points to the outcomes of the UK-EU Summit on 19 May as its main answer to the Committee, and states that further technical negotiations are required to implement the commitments.
- On the SPS agreement, the government says it agreed "the broad parameters" at the Summit, will "start talks straight away", and that implementing the agreement "will require primary legislation".
- On mutual recognition of conformity assessments, the government "notes" the suggestion and says the Summit outcomes "did not include a commitment to negotiate MRAs", while remaining committed to tackling trade barriers.
- On the Pan-Euro-Mediterranean Convention, the government says only that the UK "will now engage business and Pan-Euro-Mediterranean (PEM) members to consider the benefits" of joining.
- On research, the government says the UK "is interested in potentially associating to FP10, assuming it is open, relevant and provides good value" for researchers and taxpayers.