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Sir Keir Starmer wants to connect the shows of trading emissions in the UK and the EU in the sign that the Prime Minister becomes more ambitious about his “reset” relations with Brussels on the eve of a key meeting next week.
February 3, Starmer will become the first British leader of Brexit to attend a meeting of 27 European Council leaders, an informal gathering in Brussels dedicated to the defense and safety of cooperation.
With the planned EU-UK summit in the spring to discuss a wider review of the relationship after Brexit, Starmar And his ministers talk about new ways to build cooperation with British trade partner.
Since Brexit, when the EU and the UK split their carbon markets, have traded UK licenses with a significant discount on those who are traded in the EU.
The scheme ratio would deepen the liquidity of both markets and helped both sides with the transition to a net zero, according to to consulting border economy.
It would also allow you to avoid border fries caused by the EU and the UK that imposing mechanisms of carbon boundary adjustment, or cbams -Imports that intense carbon such as steel, cement and fertilizer.
Two EU officials with the knowledge of the discussion said the UK asked for ETS and CBAM’s ETS and CBAM on the agenda for the spring summary, which is expected in March or April.
Last week, Nick Thomas-Symonds, Minister of the Office of the Cabinet who supervises the reset discussions, said Britain would look at the relationship with the EU emission trading scheme to avoid disorder in the UK.
He said The Committee on Business and Trade of the House of Home: “The connection of our systems is absolutely what is ambition.”
Meanwhile, Chancellor Rachel Reeves hinted on Sunday that Britain would consider an association of an EU customs frame with neighboring countries. Also supported Britain Alignment permanent with EU rules identified industries such as chemicals.
She said she was “absolutely happy” to watch the idea of joining Britain Pan-euro-meditation conventionCustoms Agreement between EU and 20 countries, including in the Middle East and Balkans.
It comes as the EU diplomats warned that, unless Starmer showed more ambitions, his reset made little to increase the British economy. “None of this would have an impact on growth,” one said.
Last year’s Labor General Manifesto excluded Britain to join the unique market, the Customs Union or adopt a free movement, but Starmer and Reeves now want to show that resetting can bring an economic gain.
A senior government official in the UK said: “The British job wants to avoid any type of cliff edge or additional costs. We are looking for Win-Win solutions to build confidence and release our carbon markets falls into this category.”
The Government of the UK was under the increasing pressure of the industry to announce that it would match its ETS scheme with the EU scheme to eliminate additional border bureaucracy. Also grows concern, for example in Steel industryAbout the impact of the Decision on the introduction of the CBAM UK in 2027 – all year later than the EU tax.
Adam Berman, Director of Policy in Lobby Group Energy UK, said that the release of UK and EU Carbon market “is the only solution that protects the British industry from the incoming EU CBAM. The schedule due to divergence will do nothing to reduce energy accounts or do British companies more competitive – the problems that ETS connecting can help solve. “
The Government spokesman said: “According to the terms of the trade and cooperation agreement, the Government of the UK and the EU agreed to consider connecting our carbon price schemes and cooperating on carbon prices.”
But the question will probably be the subject of difficult negotiations. A leaked internal document that sets up EU negotiating positions Last month, he said that most EU countries were open to connecting, but provided that the UK had submitted a “complete dynamic compliance” with the EU law, which would require the UK to repeat the relevant EU law -the book of Statutes in the UK.
The administration of Donald Trump indicated that carbon taxes were considered discriminatory and that they could be susceptible to retaliation in the plans that the US president ordered to be assembled “within 60 days”.
Sir Ed Davey, the leader of the liberal democrat, urged Starmer to be more ambitious with his reset in the UK and wants Britain to re -join the customs union.
“Clearly they are willing to talk seriously, they are worried about Trump as well,” he told the Financial Times. “This is the moment for the Labor to take the risk, be ambitious and look for a contract that can actually jump the starting of the economy.”
The Labor Manifestation has set up limited ambitions for resetting, including a contract for facilitating animal and plant products, a recognition of professional qualifications and a contract that will allow the UK artists to freely visit through the EU.
Brussels will require numerous concessions from the UK in exchange for any contract, including continuous access to British fishing waters. “There is nothing without fish,” said an EU official.
The EU also requires a bilateral “youth experience scheme” to enable under 30 to be able to travel and work in the UK and block. Starmer has promised not to re -introduce a free movement, but British officials believe that a kind of compromise is possible.
Andrew Griffith, a conservative business secretary in the shadow, said: “We must avoid resetting Brexit on the rear door by alignment with a low EU growth model.”
