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EU Emissions Trading Scheme: UK Emissions Trading Scheme

Question for Department for Energy Security and Net Zero

UIN HL5742, tabled on 12 March 2025

To ask His Majesty's Government whether they intend to discuss linking the respective emissions trading schemes of the UK and the European Union at the UK–EU leaders' summit on 19 May.

Answered on

20 March 2025

The Government has committed to improving the UK’s trade and investment relationship with the EU, and tackle unnecessary barriers to trade. Under the terms of the UK-EU Trade and Cooperation Agreement (TCA), the UK Government and EU agreed to cooperate on carbon pricing and give serious consideration to linking respective emissions trading schemes (ETSs). Ahead of the UK-EU Summit on the 19th May, the UK Government is actively considering the case for linking ETSs. This does not prejudge the outcome of any potential discussions with the EU on ETS linking.