[Brussels, 19 May] – Today, EU and UK officials met in London for a summit aimed at resetting their post-Brexit relations. Negotiators struck a deal on security, fisheries and energy, including an agreement on working towards linkage of EU and UK Emissions Trading Schemes (ETS) and mutual technical and regulatory exchanges on new technologies such as CCUS.
The Carbon Capture and Storage Association (CCSA) strongly welcomes these latest developments. Establishing a link between EU and UK ETS provides greater certainty for industry on both sides of the Channel, removing barriers to trade and encouraging investments in low-carbon technologies such as CCUS, a sector which both the EU and the UK have committed to support. A linked carbon market would ensure a level playing field in terms of carbon pricing, reducing the risk of competitive distortions and carbon leakage as well as lowering the overall cost of reaching net zero.
Cross-border cooperation aimed at creating a Europe-wide CO2 storage market including the European Economic Area (EEA) and the UK. This has the potential to bring down CO2 transport storage costs by 28% for emitters located in the EU, saving billions of Euros as well as significantly bringing down emissions, as shown by this report.
While these positive developments in the energy cooperation between the EU and the UK are very much welcomed, the CCSA calls for the delivery of a comprehensive and robust Carbon Border Adjustment Mechanism to cover all sectors and industries including those currently out of scope, such as refining, glass, ceramics – and take urgent steps towards removing the regulatory barriers to a European-wide CO2 storage market. This will significantly contribute to the effective reduction of emissions and providing concrete support to the deployment of CCUS technologies.
Olivia Powis, CEO, said:
“The outcomes of the EU-UK Summit mark a pivotal moment for Europe’s climate ambition. A linked EU-UK Emissions Trading System alongside a comprehensive CBAM, would not only enhance the efficiency of carbon pricing but also provide a clear, stable signal to industry, crucial for unlocking long-term investments in CCUS technologies. For sectors that are hard to decarbonise, CCUS will play a critical role in meeting net-zero goals. A unified carbon market can reduce fragmentation, lower compliance costs, and help ensure that carbon abatement happens where it’s most cost-effective.”
“Moreover, in the context of the EU’s Carbon Border Adjustment Mechanism, close alignment between the UK and EU on carbon pricing is vital to safeguard competitiveness and minimise trade friction. This is not just about environmental alignment, but also about economic and industrial strategy. A linked system, alongside addressing the regulatory barriers to a European CO2 market , will give the UK and EU a shared platform to lead on international carbon market development, demonstrating climate leadership on the global stage at a time when ambition and cooperation are more important than ever.”
About the CCSA
CCUS, or Carbon Capture, Utilisation and Storage, is a key low carbon solution – vital to meeting Europe’s net zero target at least cost. CCUS enables industrial decarbonisation as well as the production of clean power, clean products (such as cement and chemicals) and clean hydrogen – which can also be used to decarbonise industry. In addition, CCUS also enables greenhouse gas removal from the atmosphere through Direct Air Capture with Storage (DACS) or Bioenergy with CCS (BECCS).
The CCSA is the trade association accelerating the commercial deployment of CCUS, with offices in Brussels and London. We work with members, governments and other organisations to ensure CCUS is developed and deployed at the pace and scale necessary to meet net zero goals and deliver sustainable growth across regions and nations.
The CCSA currently has over 120 member companies who are active in exploring and developing different applications of carbon capture and removals, CO2 transportation by pipeline and ship, utilisation, geological storage, and other permanent storage solutions, end-users in the power, industry, waste management, fuels, and hydrogen production sectors, plus supply chain, engineering, construction and management, legal and financial consulting sectors.