Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Labour’s ‘Brexit reset’ draws fire over plan to align UK carbon rules with EU

by February 3, 2025
February 3, 2025
Labour’s ‘Brexit reset’ draws fire over plan to align UK carbon rules with EU

Businesses grappling with rising energy costs could see higher bills under Labour leader Sir Keir Starmer’s proposal to link the UK’s emissions policy with the European Union’s carbon pricing scheme.

Critics—including Tory MPs, leading Brexiteers, and energy analysts—warn that adopting stricter EU rules could inflate manufacturing and power-generation expenses, potentially passing higher costs on to consumers.

Starmer is in Brussels this week, five years after Brexit, aiming for what he calls a “reset” of the UK-EU relationship. While he is also seeking new defence and security agreements, attention has zeroed in on his plans for “full dynamic alignment” with EU carbon trading rules—an approach that could reignite suspicions Labour intends to reverse parts of the Brexit settlement.

‘no sense to lock into eu net zero policy,’ say critics

Former Brexit negotiator Lord Frost condemned any shift towards the EU scheme, calling it “even more expensive” and urging ministers to reduce, not tighten, net-zero measures. Jacob Rees-Mogg, former business secretary, labelled emissions trading schemes “a means of making energy more expensive,” advising they “should be abolished.” Andrew Griffith, the Conservative business spokesman, likewise argued that joining the EU’s system “will add more costs to businesses and consumers.”

Britain’s standalone carbon trading market, introduced after leaving the EU, has seen the cost of a carbon allowance hover around £35 a tonne, compared with the EU’s £70 a tonne. Yet this gap has begun to narrow, with prices rising above £45 in the UK after news of Starmer’s proposals, prompting concerns of mounting pressure on energy-intensive industries.

Under carbon trading rules, companies must buy permits if they emit above a certain threshold. If the UK formally re-links with the EU scheme, analysts suggest the combined cost to industry could run into billions of pounds each year. Utility policy expert Steve Loftus estimates the total annual impact could reach £3.7 billion, with higher industrial electricity prices likely feeding through to household bills.

Independent energy consultant Kathryn Porter said any alignment “will make carbon emissions more expensive,” leading to a general uptick in the cost of producing goods from fossil fuels—a move she views as “very inflationary.”

Some major industries, including steelmakers and power generators, support Labour’s plan despite potential short-term cost rises. By reintegrating with the EU carbon system, they hope to sidestep a coming Carbon Border Adjustment Mechanism (CBAM)—effectively a carbon tariff on energy-intensive imports—that could far exceed the expense of higher carbon prices.

A government spokesman noted that the current UK-EU Trade and Cooperation Agreement permits consideration of linking carbon pricing schemes. Starmer has repeatedly said his priority is “making Brexit work better” rather than rejoining the EU, but his critics insist that deeper alignment with Brussels risks diluting British regulatory independence and piling new costs onto struggling businesses.

Read more:
Labour’s ‘Brexit reset’ draws fire over plan to align UK carbon rules with EU

0
FacebookTwitterGoogle +Pinterest
previous post
Jimmy Carter wins posthumous Grammy, sets record for category
next post
Donald Trump’s new tariffs: what they could mean for the UK

You may also like

London’s leading electric taxi firm secures £1.6m asset...

December 17, 2024

Stormy skies dampen festive cheer for Mitchells &...

January 15, 2025

Office Furniture 2025 – Designing a Modern Office...

January 15, 2025

BYDFi Officially Launches On-Chain Trading Tool MoonX, Ushering...

April 27, 2025

Frasers builds 5% stake in Asos to become...

October 24, 2022

Shein turns its back on New York steaming...

May 12, 2024

A comprehensive guide: Understanding the different types of...

September 25, 2023

Business lending to drop at fastest rate in...

February 6, 2023

Should UK Business Owners Be Worried About Rachel...

August 27, 2024

70% of mid-sized businesses on track to incorporate...

October 19, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Friday Feature: LUMIN Schools

      May 23, 2025
    • Shifts, Not Shocks: Rethinking Rust Belt Decline

      May 23, 2025
    • Tariffs on Imports from China Are Still Too High

      May 23, 2025
    • US and Iran clash over uranium enrichment as nuclear talks resume in Rome

      May 23, 2025
    • Hundreds of Ukrainian prisoners released in swap with Russia, Zelenskyy says

      May 23, 2025
    • Financial Surveillance Is Expanding—But So Is the Resistance

      May 23, 2025

    Categories

    • Business (8,036)
    • Investing (1,986)
    • Politics (15,359)
    • Stocks (3,101)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved