Wopke Hoekstra, the European commissioner for climate action, confirmed that the European Union and the United Kingdom are set to begin talks next week on linking their respective emissions trading systems.
Speaking in an interview with Reuters, Hoekstra said the talks are part of wider efforts to reset relations following Britain's 2016 exit from the EU. The two sides agreed to link their carbon markets in 2025, allowing British companies to avoid the EU's Carbon Border Adjustment Mechanism.
Hoekstra described the prospect of an agreement as achievable, pointing to the UK's longstanding efforts on climate policy across various political administrations. He added that Brussels is ready for rapid discussions, although there is no specific timetable for completing negotiations.
CBAM pressure creates urgency for UK industry
British industries are pressing the government to speed up negotiations, warning that the CBAM could apply to around £7bn of UK exports to the EU if there will be no connection. The UK government reiterated its commitment to reaching an agreement as soon as possible, but declined to comment on the exact timing of negotiations.
Since the beginning of this month, the EU began applying CBAM-related carbon costs to imports of goods such as steel and cement. The mechanism is designed to equalize carbon costs between EU producers operating within
