On 14 March 2018 the EU Energy and Environment Sub-Committee is to hear evidence on the implications of Brexit for the UK’s participation in the EU Emissions Trading Scheme: see the Greenhouse Gas Emissions Trading Scheme Regulations 2012/3038 implementing Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC, and as amended by Directive 2009/29/EC.
The EU Emissions Trading Scheme (EU ETS) is a cornerstone of the EU’s policy to combat climate change and its key tool for reducing greenhouse gas emissions cost-effectively. It is the world’s first major carbon market and remains the biggest one.
The Committee will explore what impact Brexit will have on the UK’s future participation in the Scheme.
Likely areas of questioning are said to include:
- The possibility and desirability of continuing to participate in the EU ETS
- The timing options for withdrawing from the EU ETS
- The agreement reached with the EU on managing the UK’s allowances during the withdrawal period
- The impact of losing EU ETS revenue
- The impact of taking an alternative approach to carbon pricing.