Commons Sense

House of Commons · Ministers' Questions

UK-EU Emission Trading Systems

Thursday 5 March 2026 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 2 Partly answered 0 Not answered 0

Key points

  • Tom Hayes asked about recent discussions with the European Commission on linking UK and EU emission trading systems.
  • The Minister stated they are negotiating an agreement to link emission trading schemes to lower costs for businesses and consumers, boost the economy, and ease decarbonisation.
  • Tom Hayes also questioned the imposition of costs on UK electricity exports to the EU and sought an exemption from CBAM.
  • The Minister agreed they should not impose costs on UK electricity exports to the EU and aims to reduce bills and reliance on volatile fossil fuel markets.

Topics (select to filter)

Questions & Answers

Q1 Tom Hayes Lab Bournemouth East
Economy Climate Brexit
Context

Discussions about linking the UK and EU emission trading systems to lower costs for businesses and consumers, and its economic impact of £9 billion per year.

Question

What recent discussions have taken place with the European Commission on linking UK and EU emission trading systems?

Answer from Chris Ward

We are negotiating an agreement to link emission trading schemes as part of a new partnership with the EU, which will lower costs for businesses and consumers, add £9 billion a year to the economy, and ease the route to decarbonisation and reduce reliance on volatile fossil fuel markets.

Answered
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Q2 Tom Hayes Lab Bournemouth East
Brexit Energy Business & Trade
Context

The EU's carbon budget amendment mechanism came into effect on 1 January, affecting the IFA2 interconnector between Britain and France, imposing costs of £2.2 billion on UK electricity exports to the EU and potentially robbing the Treasury of up to £8 billion.

Question

Does the Minister agree that we should not be imposing costs on UK electricity exports to the EU and throwing away money, and instead be boosting trade, energy security, and seeking an exemption from CBAM?

Answer from Chris Ward

Absolutely, the Minister agrees that we should not impose costs on UK electricity exports to the EU and seeks to reduce bills, ease the route to decarbonisation, and reduce reliance on volatile fossil fuel markets.

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