Industry calls for UK and EU emissions trading schemes to be linked

Energy industry bodies across the UK and Europe have called for emissions trading schemes to be linked to cut electricity costs and tackle trade barriers.

An open letter from organisations including Energy UK, RenewableUK and Scottish Renewables said there would be significant benefits from linking the EU and UK emissions trading schemes.

“Effective coordination would save consumers up to €44bn per year by 2040 from lower electricity costs and it would decrease emissions by circa 24% in 2040. This would bring common benefits for both the EU and the UK,” said the letter sent to political leaders across the continent.

The organisations argue that linkage would create price convergence between the two schemes, whilst avoiding competitive distortions, preventing carbon leakage and reducing costs for both EU and UK consumers.