UK and EU to link Emissions Trading Schemes: comment

"Industry has been calling for linkage of the UK and EU emissions trading schemes for years, so that higher carbon products are not dumped in the UK once Europe introduces its Carbon Border Adjustment Mechanism - which will protect domestic manufacturing - and to improve the liquidity of the market.

"More certainty means more investment and economic growth, which can only be a good thing for British industry, while Energy UK [2] estimates that linkage would reduce carbon prices over the next few years and avoid costs for products going into the EU. Reducing costs and helping British businesses stay competitive is the reason why this linkage is strongly supported by business groups from the CBI, to UK Steel and the TUC."