Linking the UK and EU carbon markets could spare companies millions of euros in carbon border taxes, as officials seek closer economic ties ahead of a post-Brexit summit in Dublin next week. The agreement would let permits be traded between the two emissions trading systems.
The UK’s post-Brexit emissions trading scheme was modelled on the EU system. Britain’s carbon border adjustment mechanism, due to take effect early next year, is also based on the EU’s levy on imported industrial goods associated with high carbon emissions.
Linking the markets would pave the way for the UK and EU to exempt each other from their respective carbon border adjustment mechanism laws, according to the proposed arrangement.
On Tuesday, 10 November, UK Trade Minister Jonathan Reynolds and Europe Minister Hamish Falconer met EU Trade Commissioner Maroš Šefčovič to press for UK inclusion in the EU’s “Made in Europe” initiative. Such access would allow UK firms to remain part of the bloc’s industrial supply chain. Meetings with Vice-President Stéphane Séjourné and Defence Commissioner Andrius Kubilius were also on the agenda.
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