European Commission President Ursula von der Leyen (left) and UK Prime Minister Keir Starmer (right). (Photo: Ursula von der Leyen's Facebook)
Despite the delayed implementation of the EU’s Carbon Border Adjustment Mechanism (CBAM), the United Kingdom has moved forward to align its carbon market with the EU’s.
UK and EU reached an agreement to establish a framework compatible with their respective Emissions Trading Systems (ETS) on May 19, which includes defining CBAM exemptions and mutual recognition of emission allowances. The goal is to mitigate the potential trade friction caused by differing carbon regulations.
