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EU Emissions Trading Scheme

Asked by Dr Al PinkertonLiberal DemocratDepartment for Energy Security and Net ZeroTabled Answered 7 November 2025UIN 86534

The question

To ask the Secretary of State for Energy Security and Net Zero, what assessment his Department has made of potential economic merits of linking UK and the EU Emissions Trading Schemes.

Answered by Chris McDonald

Linking is expected to bring significant economic benefits. It would create a larger, stable carbon market, support British businesses through removing trade barriers, support UK renewable rollout and lower electricity costs.

Linking is expected to facilitate a mutual UK-EU CBAM exemption, removing a major barrier to trade and lowering costs for UK firms. Linking is also expected to support new green industries in the UK and enable cross-border CO2 storage.

UK Government analysis was published on 19th May 2025 and is available at Gov.uk

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