Brexit offers the opportunity for the UK to redesign its energy policy, after it is released from state aid rules, Civitas has argued in new research.
Issued on Monday 9 January, Mitigating the Impact of Tariffs on UK-EU trade found that regardless of emissions trading and wider climate policy, abolition of the Carbon Price Floor mechanism makes sense “in its own right” and would release £1.2bn in costs. The paper also argued that post-Brexit, while the UK would be in principle be outside the EU Emissions Trading Scheme, any trade treaty negotiated that granted continued access to the single market would “almost certainly” require British re-inclusion.
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