Upcoming Revisions to EU Carbon Pricing and UK Linkage
- In May 2025, the UK and the EU reached an agreement to connect their respective Emissions Trading Schemes as part of a broader post-Brexit trade and regulatory arrangement.
- This agreement arose from negotiations aiming to uphold UK manifesto commitments on market access, energy security, and avoiding EU tariffs on UK steel exports.
- The linked ETS will cover sectors including electricity, industry, and waste, with plans to expand the UK ETS to the waste sector by 2028 amid calls for policy reviews.
- Following the announcement, UK benchmark carbon prices surged by 8.4%, spurring concerns from industrial leaders like Sir Jim Ratcliffe about increased costs stifling green projects.
- The linkage aims to create a larger carbon market that reduces emissions, protects UK exporters from EU carbon taxes, and signals a major post-Brexit shift in environmental policy cooperation.
18 Articles
18 Articles
UK Carbon Price Soars 8% as London Agrees to Link Emissions Trading With EU
The UK’s benchmark carbon price surged by more than 8% on Monday after the UK and the EU agreed to link their emission trading systems in the first major reset of trade relations since Brexit. The UK’s government announced on Monday that the UK has secured a new agreement with the EU post Brexit, which will include “closer co-operation on emissions through linking our respective Emissions Trading Systems.” This, the UK government says, will impr…
Carbon prices jump 8% after emissions deal
UK carbon prices surged more than 8% on Monday after the government confirmed it will link its emissions trading system (UK ETS) with the EU’s, sparking fears of rising costs for industry. The deal – the first major reset of UK-EU trade ties since Brexit – promises closer cooperation on carbon pricing. The move is aimed at boosting energy security and shielding UK exporters from EU carbon border taxes due in 2026, which the Prime Minister claime…
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