A group of more than 40 industry associations from the UK and Europe have called for emissions trading schemes to be linked up before the COP26 climate summit in November.
The International Emissions Trading Association (IETA) said that if the UK wants to reach net-zero, linking the UK’s new ETS to the EU version is critical as it would create a level playing field in terms of carbon pricing, avoid competitive distortions, and lead to alignment of cost implications for industry.
Adam Berman, European Policy Director at the IETA said: "It will allow emissions reduction targets to be reached more quickly, easily, and at better value. A larger market means a better market with more liquidity, fewer competitive distortions which damage industry, and more decarbonization opportunities."
Following Brexit, the UK left the EU ETS at the end of 2020 and launched a domestic version in January 2021, with trading set to start in May.
Other signatories to the letter sent to government leaders include Energy UK and RenewableUK.