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Greenhouse gas emissions trading after Brexit

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The Greenhouse Gas Emissions Trading Scheme (Amendment) (EU Exit) Regulations, SI 2019/107, revoke certain provisions relating to the EU ETS that will cease to apply on the UK’s exit from the EU and will maintain, with amendments, the monitoring, reporting and verification (MRV) framework for greenhouse gas emissions.

Continuing with MRV is intended to ensure transparency over greenhouse gas emissions, as well as provide information to allow implementation of the government’s proposed carbon emissions tax as a temporary replacement for the lost EU ETS carbon price in the event of a ‘no deal’ Brexit. Legislation for the carbon emissions tax is contained in Pt 3 of Finance Bill 2019.

The EU ETS supports the UK and EU’s commitment to a 20% reduction in greenhouse gas emissions by 2020 (compared to a baseline of 1990 emissions levels). The UK government has stated that it remains committed to carbon pricing as an emissions reduction tool and intends to ensure that any future approach is at least ‘as ambitious’ as the EU ETS.

Issue: 1429
Categories: News