Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what his policy is on linking the UK and EU Emissions Trading Schemes.

The UK and EU agreed to work towards linking their emissions trading schemes, the UK ETS and EU ETS, at the May 2025 UK-EU summit. This was on the basis of the Common Understanding text agreed at that summit.

Linking is expected to bring significant economic benefits to the UK. These include a cheaper path towards decarbonisation by providing businesses with access to a larger, more liquid, stable carbon market. Linking would also create the conditions for mutual Carbon Border Adjustment Mechanisms exemptions, removing a major barrier to trade and lowering costs for UK firms.