Ahead of a major EU-UK Summit that took place on Monday 19 May, the European Commission and the United Kingdom held discussions on how to strengthen their bilateral cooperation and achieve a common understanding on a wide range of areas, including carbon markets and new energy technologies.
A crucial point in the conversation about the EU and UK post-Brexit relations concerned the linkage between the Emission Trading System (ETS) implemented in the EU and the one set by the UK following the country’s departure from the European Union.
To support decarbonisation efforts and create a level playing field, the EU and the UK pledged to work towards connecting their carbon markets and creating a larger integrated system. This move would lay the conditions for goods originating in the EU and UK to benefit from mutual exemptions from climate tariffs.
The linkage between the two ETS’ represent an important milestone for the CCS sector and the creation of a pan-European CO2 market, offering a more cost-effective pathway to meeting climate goals.
As part of the discussions on the post-Brexit deal, the UK and the European Commission also confirmed their intention to continue technical regulatory exchanges on new energy technologies such as hydrogen, CCS and biomethane.
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