FAQ
Net Zero policies
The UK's commitment to achieving net-zero emissions by 2050 requires a significant reduction in carbon emissions from businesses. The UK's implementation of an Emissions Trading System (ETS) is a step in the right direction, but without full alignment with the EU ETS framework, businesses may face additional costs.
27. The UK Government should engage in negotiations with the EU to establish a formal link between the UK and EU ETS, enabling the mutual recognition and trading of allowances between the two systems. The necessary legislative and regulatory measures should be implemented to enable this linkage, including provisions for ongoing monitoring, review, and dispute resolution.
The UK's transition to a low-carbon economy requires significant carbon reduction efforts from domestic industries. However, imported goods with embedded carbon emissions may be subject to different carbon pricing than domestic goods, leading to trade distortions and potential disadvantages for UK industries. This could hinder the UK's efforts to reduce carbon emissions and contribute to global efforts to combat climate change.
28. The UK Government should design and implement a UK Carbon Border Adjustment Mechanism (CBAM) that aligns with the EU CBAM scheme, ensuring consistency in the treatment of imported goods with embedded carbon emissions and reducing the reporting requirements needed to cooperate with the EU effectively.
29. The UK Government should implement efficient reporting and monitoring systems for the UK CBAM and periodically review and update the UK CBAM in line with the EU scheme to reflect developments in carbon pricing, international trade, and climate policy.
30. The UK should therefore engage in ongoing dialogue and cooperation with the EU and other international partners to monitor the effectiveness of carbon border adjustments and address any emerging challenges or opportunities.
The UK and the EU share a common goal of reaching net-zero emissions by 2050, but without energy cooperation, it may be difficult to achieve this objective. The UK and EU may face different challenges and opportunities in their respective energy sectors, which could create barriers to cooperation and hinder progress towards net-zero targets.
31. The UK Government should maintain Title VIII Energy Provisions and ensure they 'roll over' in the UK's agreements with the EU, facilitating continued cooperation and alignment in energy policy and regulation.
32. The UK Government should collaborate with the EU on the development and implementation of shared energy objectives, such as enhancing energy security, promoting renewable energy, and reducing greenhouse gas emissions.
33. The UK should prioritise North Sea energy cooperation, freeing up electricity trading arrangements.
The UK's commitment to achieving net zero requires collaboration with the EU to achieve shared climate goals. Without effective cooperation on initiatives, research, and investment in low-carbon technologies and energy infrastructure, the UK may struggle to meet its net-zero target, and progress towards global efforts to combat climate change may be hindered.
34. The UK Government should enhance cooperation with the EU in the pursuit of shared net-zero targets, focusing on joint initiatives, research, and investment in low-carbon technologies and energy infrastructure. This should include identifying areas of alignment, such as EU deforestation and corporate reporting requirements, and developing joint strategies to address these issues.
35. To ensure ongoing communication and collaboration on climate and energy policy, the UK should establish mechanisms for cooperation between the UK and EU authorities, facilitating the exchange of best practices and information, allowing both the UK and the EU to learn from each other's experiences and progress towards shared climate goals.
36. The UK should rejoin the European Environment Agency.
Ensuring consistency and alignment with the EU on sustainability and trade policies is critical for maintaining a healthy and mutually beneficial economic relationship. Without consistent and aligned policies, trade between the UK and the EU may be hindered, and companies may face dual burdens in complying with different regulations and standards.
37. The UK Government should ensure that UK measures related to corporate action on trade, such as deforestation and sustainability requirements, are consistent with those required by EU law.
38. The UK Government should establish a sustainable trade dialogue with the EU and other affected countries to seek to minimise the impact of trade-related measures on UK businesses and consumers. Dialogue should focus on identifying areas of alignment between the UK's and the EU's sustainability and trade policies, as well as promoting cooperation and the exchange of best practices in the areas of sustainability and trade.