Innovative Energy Consultancy Ltd
Innovative Energy Consultancy Ltd

EU ETS and the impact of Brexit

The Government has stated that EU ETS will continue for the 2019 and 2020 compliance years during the Brexit transition period from 1 February 2020 to 1 January 2021.

A new report by the Durham Energy Institute (DEI) is ‘making an urgent case for the UK Government to focus on energy priorities as part of the Brexit negotiations’.

It says:

The DEI is calling for a recognition that the UK is already facing significant threats to the future security of the UK energy system which are likely to be enhanced by the uncertainties of the Brexit process and we are calling for:
1. A consistent, long-term energy policy must be developed based on an open debate about whether the UK should aim to develop a more independent UK energy sector;
2. Increased investment in research and development for energy storage;
3. Increased emphasis on exploiting indigenous low-carbon energy sources, particularly heat and wind;
4. Incorporation of ambitious energy efficiency and energy demand reduction directives in to UK policy framework
5. A reset and push towards smart-grid development plans; and
6. Measures to safeguard collaborative developments in energy.

“The UK is increasingly reliant on external energy imports and non-UK players in the market. However Brexit has signalled a desire for greater sovereignty. What implications does this have for the UK energy sector? It is essential we have an open debate about how Brexit relates to energy and whether the UK should become more self-sufficient on energy.

“A long drawn-out Brexit process with little clarity on the direction of energy policy will have a significant impact on investments from the private sector which are so desperately needed if we are to ensure the UK energy system is resilient and fit for the future.”

Read the report here.

Thank you! Your subscription has been confirmed. You'll hear from us soon.
Sign up to receive Energy Brief, which includes our monthly report on Industry News and Market Price Trends.