EU parliament sets UK ETS agreement conditions

The European Parliament today adopted a report indicating that acceptance of any agreement between the EU and the UK would be conditional on the country enforcing carbon pricing measures which are at least as stringent as the EU's emissions trading system (ETS).

In a report adopted today, the European Parliament stressed that UK carbon pricing measures should already be "set and in place" ahead of the vote on whether to give consent to a draft agreement between the UK and the EU.

The UK should also implement a system of carbon pricing of "at least the same scope and effectiveness" as the EU ETS, the parliament said. And at the end of the continuing Brexit transition period to 31 December this year, the UK should apply the same principles as the EU for use of external emission credits.

The whole parliament has also backed the environment committee's call for the UK to "fully" align itself with the EU's current and future climate policy framework, including revised 2030 targets, 2040 targets and trajectories to climate neutrality by 2050.

Speaking after the vote, Dutch centre-left S&D member Kati Piri said parliament does not want a race to the bottom either on social or environmental standards. "If there's one red line for parliament, it's absolutely the level playing field," Piri told Argus.

Luxembourg centre-right EPP member Christophe Hansen said that although the parliament's preference remains for the UK to continue participating in the European market, any UK ETS formed must be of equivalent standard and enforce similar pricing. "It would make much more sense to stay in the EU ETS. But that is not our choice," said Hansen.

In its report, the parliament stresses the environment committee's demand that any linking of a future UK ETS and the EU system can only take place if the UK ETS does not undermine the "integrity" of the EU system.

The EU has said that linking systems is complicated and could take years.

By Dafydd ab Iago