This report explores the evolving dynamics of climate and energy cooperation between the UK and EU under the Trade and Cooperation Agreement (TCA). It addresses both the opportunities and challenges facing this partnership as the UK navigates its post-Brexit relationship with the EU. Key areas examined include energy security, renewable energy development, emissions trading schemes, and regulatory divergence. The report discusses the current state of energy trading, highlighting inefficiencies that have emerged since the UK left the EU's Internal Energy Market and the potential for improving trade mechanisms to lower energy costs. It also explores the possibility of linking UK and EU emissions trading systems to reduce tariffs and trade frictions under their respective Carbon Border Adjustment Mechanisms (CBAMs). Additionally, the report identifies potential areas for deeper cooperation, such as aligning climate regulations, supply chain security for critical materials, and joint efforts in climate diplomacy. Political dynamics, including the UK’s desire to reset relations with the EU and the European Commission’s call for enhanced energy collaboration, are also considered. The report concludes by highlighting the significance of political commitment on both sides to further advance climate and energy cooperation, particularly as the 2026 expiration of the TCA’s energy chapter approaches.
Authors
- Pages
- 30
- Published in
- United Kingdom
Table of Contents
- FOREWORD 2
- As the new UK government sets out its plans for a reset of EU relations plenty 2
- Yet as this report sets out these policies are inextricably linked to issues of 2
- This report sets out what the key issues are. I am grateful to the authors Joël 2
- Reland and Camilla Born for outlining the state of play so clearly. Thanks to Jill 2
- Rutter for checking the text and to Eliza Vierny and John Barlow for their assiduous 2
- As ever I hope that you will find what follows interesting informative and thought- 2
- 18 September 2024 2
- Professor Anand Menon 2
- Director UK in a Changing Europe 2
- Executive summary 4 3
- Introduction 6 3
- 1 Cooperation under the TCA 8 3
- Energy the state of cooperation 8 3
- Energy key issues to resolve 10 3
- Energy options for deepening 12 3
- Climate the state of cooperation 14 3
- Climate key issues to resolve 16 3
- Climate options for deepening 17 3
- 2 Beyond the TCA 19 3
- Trade and supply chains 19 3
- Regulatory divergence 22 3
- Climate diplomacy 24 3
- 3 The politics 26 3
- UK political priorities 26 3
- EU political priorities 27 3
- Conclusion 29 3
- EXECUTIVE SUMMARY 4
- INTRODUCTION 6
- 1 COOPERATION UNDER 8
- THE TCA 8
- TCA issues to address 8
- Energy trading 8
- Energy chapter 8
- Electric vehicles 8
- TCA options for deepening 8
- NSEC 8
- Energy security 8
- Emissions trading 8
- ENERGY THE STATE OF COOPERATION 8
- ENERGY KEY ISSUES TO RESOLVE 10
- Efficiency of energy trading 10
- Expiry of the TCA energy chapter 11
- ENERGY OPTIONS FOR DEEPENING 12
- Expanded participation in NSEC 12
- Cooperation on energy security 12
- CLIMATE THE STATE OF COOPERATION 14
- CLIMATE KEY ISSUES TO RESOLVE 16
- Rules of origin for electric vehicles 16
- CLIMATE OPTIONS FOR DEEPENING 17
- Linking emissions trading schemes 17
- 2 BEYOND THE TCA 19
- Beyond the TCA options for deepening cooperation 19
- Trade and supply chains 19
- Regulatory divergence 19
- Climate diplomacy 19
- TRADE AND SUPPLY CHAINS 19
- Structures for cooperation 21
- REGULATORY DIVERGENCE 22
- Structures for cooperation 24
- CLIMATE DIPLOMACY 24
- Structures for cooperation 25
- 3 THE POLITICS 26
- UK POLITICAL PRIORITIES 26
- EU POLITICAL PRIORITIES 27
- CONCLUSION 29
- UK in a Changing Europe promotes rigorous 30
- Economic and Social Research Council and based 30
- 020 7848 2630 30
- UKandEU 30
- How to cite this publication 30
- UK in a Changing Europe. 2024 UKEU climate 30
- This is an open access work published under a Creative 30
- Commons Attribution 4.0 International License. 30
