Posted on: 02/05/2017
The International Emissions Trading Association (IETA) has urged the UK to remain within the European Union Emissions Trading Scheme (EU ETS) even after Brexit.
In a letter to Energy Minister Nick Hurd, the organisation called for Britain to remain within the ETS until at least the end of the current third phase. The fourth phase is due to begin in January 2021.
Iceland, Liechtenstein and Norway take part in the ETS without being members of the EU.
The letter said: “IETA takes very seriously the implications of Brexit on climate policy and emissions trading, as there are many risks to UK businesses and their European counterparts if the UK were to no longer participate in the EU ETS.
“As the Brexit negotiations will likely require the UK to leave the EU by March 2019, we are concerned about potential market disruption from the timing mismatch.
“IETA strongly recommends that the UK continue its participation in the EU ETS, particularly through the current phase ending in 2020.”
Businesses that could be affected include power station operators, airlines and those in the energy-intensive industries.