The European Commission and the government of the UK announced today an agreement to work towards linking their carbon markets through establishing a link between their emissions trading systems (ETS), which have been developing separately since Brexit.
Under the envisioned linkage agreement, carbon allowances issued by the EU or UK could be recognized as complying with the greenhouse gas emissions trading system of the other jurisdiction.
The announcement forms part of a new series of agreement reached at the first ever EU-UK summit on Monday, covering areas ranging from security and defense and migration to energy and climate change policies.
