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The agreement promises to unlock market and investment opportunities and facilitate greater UK-EU collaboration.

By Alexander Buckeridge-Hocking, Paul A. Davies, JP Sweny, Evelyne Girio, James Bee, and Isobel Moffatt

The UK and EU reached a landmark agreement at the UK-EU Summit to reintegrate their emissions trading systems (ETS) and explore the recoupling of their electricity markets. These strategic initiatives are intended to streamline operations, stabilise prices, and strengthen energy security across the UK and EU.

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The Commission’s proposal seeks to reshape EU Sustainability requirements by amending CSRD, CSDDD, EU Taxonomy, and CBAM.

By José María Alonso, Paul A. Davies, Fabrice Fages, Michael D. Green, Nicola Higgs, David Little, Cesare Milani, Axel Schiemann, James Bee, and Toon Dictus

On 26 February 2025, the European Commission (Commission) published its much-anticipated first Omnibus Package. This first Omnibus package regarding sustainability contains a set of legislative proposals designed to…

By Paul A. Davies, Michael D. Green, and James Bee

The CBAM would seek to mitigate carbon leakage through the imposition of a levy on carbon-intensive imports into the EU, while free allowances under EU ETS would be phased out.

On 13 December 2022, negotiators from the European Parliament and European Council reached a provisional and conditional agreement on the terms of the EU’s carbon border adjustment mechanism (CBAM).

The CBAM was initially proposed by the European Commission in July 2021 as part of its “Fit for 55” package of policies. The measure seeks to address and mitigate the risk of “carbon leakage” from the EU, which refers to the risk that the EU’s greenhouse gas reduction efforts will be offset by increasing emissions outside of its border through the relocation of production to non-EU countries with less ambitious emissions reduction policies.

The CBAM would impose a levy on in-scope goods that are imported into the EU. Importers of such goods would be required to pay an amount equal to the cost of the emissions allowances under the EU Emissions Trading System (ETS) that would have been necessary to pay to produce that good in the EU.

The outcome of the review may signal what climate-related laws and policies to expect in the UK in the coming years.

By Paul A. Davies, Michael D. Green, and James Bee

On 8 September 2022, newly appointed UK Prime Minister Liz Truss announced that Chris Skidmore MP, a Member of Parliament and former minister of energy and clean growth, would lead a review into the UK’s net zero commitment.

The previous administration established a UK target in 2019 to bring all greenhouse gas (GHG) emissions to a net zero level by 2050, in response to a recommendation from the Committee on Climate Change (the UK’s independent climate advisory body). The new Prime Minister, who during her leadership campaign had stated that she will “double down” on the UK’s attempts to meet its 2050 target, appointed Skidmore with the mandate to find the “fastest and most efficient way” to reach the target.

Skidmore, who as energy and clean growth minister signed the UK’s net zero target into law in 2019, has been given until the end of 2022 to report back with his findings.