Politics
Brexit Deal Will Leave Carbon Market Question Wide Open
- Trade accord will oblige U.K. to ensure carbon-pricing system
- U.K. has yet to decide whether to choose tax or cap-and-trade
Cooling towers stand near Selby, U.K.
Photographer: Simon Dawson
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The Brexit trade deal still under negotiation between the U.K. and European Union will probably exclude any explicit agreement on carbon trading, leaving it to authorities in London to decide on how to price pollution starting Jan. 1.
British negotiators are poised to commit to building an emissions pricing system that’s at least as strong as the EU’s cap-and-trade program, according to two officials with knowledge of the matter. They are likely to stop short of giving any more clarity about the new arrangements, leaving industry and power market traders guessing about what will be in place in just five weeks.