UK-EU Emission Trading Systems 2026-03-05
2026-03-05
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Q1
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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.
What recent discussions have taken place with the European Commission on linking UK and EU emission trading systems?
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.
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Q2
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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.
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?
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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