EU‑UK carbon market deal close, with UK courting access to ‘Made in Europe’ before Dublin summit

UK and EU officials are nearing an agreement to link their carbon emissions markets, potentially saving companies millions in carbon border taxes. This agreement would allow trading of carbon permits between the two systems, with the UK’s emissions trading scheme modeled after the EU’s. The UK’s upcoming carbon border adjustment mechanism is also based on the EU’s carbon border levy. Linking the emissions systems could exempt both from their respective CBAM laws. Recent discussions included UK trade minister Jonathan Reynolds and EU trade commissioner Maroš Šefčovič, focusing on UK participation in the EU’s ‘Made in Europe’ initiative.