The Informer

The House of Lords EU Energy and Environment Sub-Committee has written to the energy secretary Claire Perry to spell out more on the UK Government’s plans for carbon pricing post-Brexit.

The letter follows an appearance by Perry before the committee last month, accompanied by Robert Jenrick MP, Exchequer Secretary to the Treasury.

The aim of the session was to discuss the Government’s plan for replacing the EU Emissions Trading Scheme (EU ETS) after Brexit, to help ensure the UK continues to reduce its greenhouse gas emissions.

The Committee has now written to the Minister, asking for further detail and clarification.

Key questions

The letter addresses both a ‘deal’ scenario, in which the UK establishes a domestic ETS and seeks to link it to the EU ETS, and a ‘no deal’ scenario, in which the Government intends to implement a Carbon Emissions Tax.

Some of the questions it asks are:

• whether the EU-Switzerland linking arrangements are a good model for the UK,

• whether the UK would stay part of the EU ETS if the transition period extends past 2020,

• how the rate of the Carbon Emissions Tax would be set,

• and what the Tax would mean for the Single Electricity Market on the island of Ireland and the UK’s carbon budgets.

> View the letter