PARLIAMENTARY WRITTEN QUESTION
(12 January 2026)

To ask the Secretary of State for Energy Security and Net Zero, whether his Department conducted a cost-benefit analysis to support the decision to link the UK Emissions Trading Scheme with the EU Emissions Trading Scheme.

Asked by:
Claire Coutinho (Conservative)

Government analysis indicates linking could stimulate economic growth, adding billions annually to our economy each year in the long run.

Linking the UK and EU ETSs is expected to bring significant economic benefits to the UK. These include for example providing businesses with access to a larger, stable carbon market; and the removal of some of the regulatory barriers in sectors like CO2 storage.

Additionally, linking is expected to create the conditions for mutual CBAM exemptions, removing a major barrier to trade and lowering costs for UK firms.

Answered by:
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