Both the British International Freight Association (BIFA) and the European Sea Ports Organisation (ESPO) have welcomed the outcome of the EU-UK Summit, which was held earlier this month in a bid to revitalise the relationship between the two parties.
Chief amongst the summit’s talking points was how the European Commission and the UK can work towards linking their respective Emissions Trading Schemes – EU ETS and UK ETS. With both parties set to launch their own Carbon Border Adjustment Mechanisms (CBAM) in 2026 (EU) and 2027 (UK), the two will need to clearly outline the sectors which fall in the remit of the ETS linking agreement, so that chances of carbon leakage and competitive distortions are kept to a minimum.
The sectors which have been highlighted thus far are power generation; industrial heat generation; industry; domestic and international maritime transport; and domestic and international aviation – with further sectors able to be added. The agreement stressed that the link should not restrict the EU or the UK from chasing higher environmental targets, too.
The summit also placed an emphasis on rebuilding trade ties between the two parties, with Brexit having had a central role in that shift.
“BIFA members, and the importers and exporters that they serve, will be breathing a sigh of relief following practical commitments to improve regulatory cooperation,” said Steve Parker, director general of BIFA. “We hope that the announcement will significantly simplify border processes and consequently contribute to increased volumes of goods traded between the UK and the EU.
“With the EU as the UK’s largest trading partner, BIFA members will not want the work to stop here. We need to make the most of this opportunity by recognising that there has been a reset of the country’s trading relationship with the EU, and trying to future proof it,” added Parker.
Isabelle Ryckbost, ESPO’s secretary general, commented: “In this turbulent global geopolitical environment, with more and more trade obstacles and barriers being erected between countries and regions, it is particularly positive to see the EU and the UK lifting some of these barriers again, simplifying trade, and coming closer.
ESPO has welcomed the commitment to align the EU ETS and UK ETS and is stressing the importance of enhanced cooperation in maritime security and safety.
