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Britain Considering Linking With EU Carbon Market
Published by Global Banking & Finance Review®
Posted on March 20, 2025
2 min readLast updated: January 24, 2026
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Published by Global Banking & Finance Review®
Posted on March 20, 2025
2 min readLast updated: January 24, 2026
Add as preferred source on GoogleBritain is considering linking its carbon market with the EU's ahead of the UK-EU Summit, potentially raising UK carbon prices to EU levels.
By Susanna Twidale
LONDON (Reuters) - Britain is actively considering the case for linking its Emissions Trading System (ETS) with the European Union's carbon market ahead of a UK-EU Summit in May, the government said on Thursday.
Britain is seeking enhanced cooperation on security, law enforcement and on removing trade barriers with the EU, when leaders of both sides are set to meet at the Summit.
“The Government has committed to improving the UK’s trade and investment relationship with the EU, and tackle unnecessary barriers to trade,” a statement from the UK ETS Authority said.
“Ahead of the UK-EU Summit on the 19th May, the UK Government is actively considering the case for linking ETSs,” the statement said.
Britain quit Europe’s ETS at the end of 2020 as part of its exit from the EU and launched its own carbon market in 2021.
Both the EU and UK ETSs charge power plants and other industrial entities for each ton of carbon dioxide they emit as part of wider efforts to cut emissions and reach climate targets.
Currently, prices in the UK scheme trade around 45 pounds ($58.30) per metric ton lower than in the EU, where the equivalent benchmark contract trades around 73 euros ($79.18) a ton.
Analysts have said linking the two systems would likely see UK prices rise to meet those of the EU.
($1 = 0.7718 pounds)
($1 = 0.9219 euros)
(Reporting By Susanna Twidale; Editing by Kirsten Donovan)
The main topic is Britain's consideration of linking its carbon market with the EU's ahead of the UK-EU Summit.
Britain aims to enhance trade and cooperation with the EU and address climate targets by potentially linking carbon markets.
Linking the markets could raise UK carbon prices to match EU levels, affecting emissions trading costs.
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