Government releases new guidance on no deal Brexit climate regulations
The Department for Business, Energy and Industrial Strategy (BEIS) has released a new guidance paper updating how the UK’s climate change regulations, emissions trading and energy labelling would be affected in the event of a no deal Brexit – a scenario which Prime Minister Boris Johnson has refused to rule out.
The document, Meeting climate change requirements if there’s no Brexit deal, detailed new plans to introduce a Carbon Emissions Tax to replace the EU Emissions Trading System (EU ETS).
The Carbon Emissions Tax would set a price of £16 per tonne of carbon dioxide (CO2) emitted by power stations and industrial sites if the UK leaves without a deal. This amount is much lower than the current price of €30 set under the EU ETS.
Additionally, in a no deal scenario, greenhouse gas (GHG) emissions from flights within the UK and between the UK and the EU will no longer be covered by the EU ETS obligations. BEIS stressed that the UK will remain a party to international climate change negotiations. The guidelines indicate that there will be: ‘no change to the UK’s deep commitment to domestic and international efforts to tackle climate change’ and that the UK will ‘keep step with equivalent ecodesign and energy labelling standards wherever possible and appropriate.’