Relationship Reset: EU-UK Collaboration on Climate and Energy

The report identifies a strategic window for the EU and UK to reset their climate and energy relationship following recent elections. It argues that the current Trade and Cooperation Agreement (TCA) is too limited and suggests a comprehensive new agreement covering industrial decarbonisation, methane, carbon capture, hydrogen, and nuclear energy. The document advocates for an 'options-based strategy' that includes clean firm power to complement renewables, and recommends aligning regulatory frameworks—such as the Emissions Trading Systems (ETS) and carbon removal certifications—to facilitate cross-border trade and infrastructure sharing.

• The EU-UK Trade and Cooperation Agreement (TCA) has limited provisions on energy and climate, and its energy provisions are scheduled to expire on 30 June 2026, presenting an opportunity for expansion.
• A significant barrier to carbon capture and storage (CCS) is that EU emitters cannot currently use the UK's vast storage potential—which includes over 40% of Europe's total licensed capacity—within the EU ETS framework.
• The report advocates for an 'options-based approach' to energy, arguing that relying solely on wind and solar is costly and land-intensive, and that 'clean firm power' is necessary for seasonal reliability.
• The EU and UK have different approaches to clean hydrogen: the UK uses a technology-neutral approach focused on emissions reduction, while the EU has primarily supported 'renewable' hydrogen.
• To avoid carbon leakage and ensure a level playing field, the EU and UK should align their hydrogen lifecycle emissions assessment methodologies and certification schemes.
• The EU and UK could collaborate on the design and licensing of Small Modular Reactors (SMRs) to reduce costs and shorten deployment timeframes through standardised products.
• The UK lost access to the ITER and EUROfusion programmes after Brexit; the report recommends a new partnership agreement to commercialise fusion energy.
• The EU's Methane Regulation introduces a Methane Import Standard from January 2027, meaning the UK must adopt a compatible Measurement, Monitoring, Reporting and Verification (MMRV) framework to maintain market access.
• Electricity trading between the UK and EU has become fragmented and costly since the UK's exit from the Internal Energy Market (IEM), with different market regimes used for various interconnectors.

APA

Clean Air Task Force (2024). Relationship Reset: EU-UK Collaboration on Climate and Energy. https://www.catf.us/resource/relationship-reset-eu-uk-collaboration-on-climate-and-energy/

Chicago

Clean Air Task Force. Relationship Reset: EU-UK Collaboration on Climate and Energy. 2024. https://www.catf.us/resource/relationship-reset-eu-uk-collaboration-on-climate-and-energy/.

Wikipedia

{{cite report |author=Clean Air Task Force |title=Relationship Reset: EU-UK Collaboration on Climate and Energy |date=2 October 2024 |url=https://www.catf.us/resource/relationship-reset-eu-uk-collaboration-on-climate-and-energy/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{cleanairtaskforce2024relationship, author = {{Clean Air Task Force}}, title = {{Relationship Reset: EU-UK Collaboration on Climate and Energy}}, institution = {Clean Air Task Force}, year = {2024}, month = oct, url = {https://www.catf.us/resource/relationship-reset-eu-uk-collaboration-on-climate-and-energy/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }