Finance
Industry groups, business call on Britain and the EU to link carbon markets
Published by Global Banking and Finance Review
Posted on April 30, 2025
Editorial & Advertiser disclosure
Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
By Susanna Twidale
LONDON (Reuters) -More than 50 companies and business groups across Europe have called on Britain and the EU to start talks at an upcoming summit on linking their carbon markets which they say will help curb costs for consumers.
Britain is seeking enhanced cooperation on security, law enforcement and on removing trade barriers with the EU, when leaders meet on May 19.
Both the EU and UK Emission Trading Systems (ETS) 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.
“The EU and UK ETS linkage would create price convergence between the two schemes, whilst avoiding competitive distortions, preventing carbon leakage and reducing costs for both EU and UK consumers,” a letter signed by companies including Equinor, Orsted and RWE seen by Reuters said.
Linking the two schemes would also likely mean Britain would avoid penalties under Europe’s Carbon Border Adjustment Mechanism which will impose an emissions fee on imports to the EU of steel, cement, aluminium, fertilisers, electricity and hydrogen from 2026.
Energy groups have warned the design of the CBAM could see exports of clean, renewable power from Britain to the EU subject to extra costs which would add to already-high EU power prices and even lead to higher emissions.
Currently, prices in the UK scheme trade around 48 pounds ($64.13) per metric ton lower than in the EU, where the equivalent benchmark contract trades around 66 euros ($75.01) a ton.
Analysts have said linking the two systems would likely see UK prices rise to meet those of the EU which could increase direct carbon costs for UK businesses in the short term. In the longer term they say it will save costs because it will remove the proposed import levies.
($1 = 0.7484 pounds)
($1 = 0.8799 euros)
(Reporting By Susanna Twidale;Editing by Elaine Hardcastle)