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Upcoming Revisions to EU Carbon Pricing and UK Linkage

  • In May 2025, the UK and the EU reached an agreement to connect their respective Emissions Trading Schemes as part of a broader post-Brexit trade and regulatory arrangement.
  • This agreement arose from negotiations aiming to uphold UK manifesto commitments on market access, energy security, and avoiding EU tariffs on UK steel exports.
  • The linked ETS will cover sectors including electricity, industry, and waste, with plans to expand the UK ETS to the waste sector by 2028 amid calls for policy reviews.
  • Following the announcement, UK benchmark carbon prices surged by 8.4%, spurring concerns from industrial leaders like Sir Jim Ratcliffe about increased costs stifling green projects.
  • The linkage aims to create a larger carbon market that reduces emissions, protects UK exporters from EU carbon taxes, and signals a major post-Brexit shift in environmental policy cooperation.
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In May 2025, the European Union announced measures to speed up the permits for renewable energy projects, reducing deadlines to six months and adjusting certain biodiversity protection laws, according to Le Figaro and Mediapart. This initiative aims to achieve carbon neutrality by 2050, but is subject to strong criticism. Internet users denounce an exemption of wind and solar farms from nature protection obligations, calling this hypocrisy. Othe…

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Bloomberg broke the news in United States on Monday, May 19, 2025.
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