Industry urges UK to link with EU carbon market before November
London (Quantum Commodity Intelligence) - UK and European business and industry associations have written this week to British Prime Minister Boris Johnson to urge the government to link the UK and European Union cap-and-trade carbon markets before the United Nations Climate Change Conference (COP26) is held in Glasgow this November.
Brexit caused the UK to crash out of the EU Emission Trading System and create its own scheme instead on January 1.
"On behalf of over 40 leading industry bodies, we urge the UK Government to start the process of linking the new UK Emissions Trading System (UK ETS) with the EU’s Emissions Trading System (EU ETS) as soon as practicable," the letter stated.
It added: "The advantages of linkage are clear in terms of liquidity, price discovery, and the ability to attract abatement from across Europe rather than just the UK."
"It would also create a level playing field in terms of carbon pricing, avoiding competitive distortions, and leading to aligned cost implications for industry across the UK and the European Economic Area (EEA)."
The Confederation of British Industry and the UK Petroleum Industry Association are among the bodies lobbying the government.