EU officials believe the bloc’s CBAM should apply to Northern Ireland, a person familiar with decision-making in London and Brussels, who was granted anonymity to speak, told POLITICO frankly about this policy. The British government – although it has no public position – is opposed to the idea, they said.
A European Commission official, also speaking on condition of anonymity, said that because the British policy is not yet finalized, Brussels needs more time and information before considering its answer. “We have not seen the details of what the UK initiative will look like,” they said. “It is far too early to speculate on how the two measures might interact.”
On the positive side, there has been a “softening of the mood” towards the interconnection of systems, and a sense of “renewed goodwill” between Brussels and Westminster following the Windsor Framework negotiations and the global energy crisis, Berman said.
But potential negotiations could still be complex and lengthy. It took more than seven years to reach an agreement between the EU and Switzerland to link their ETS.
A second official familiar with the British government’s decision-making process hinted at a distinct division within Whitehall over the best path forward. The Ministry of Energy Security and Net Zero is pushing to link emissions systems on the same terms as Switzerland, they said, but responsibility ultimately lies with the Treasury – where there have been more resistance from ministers cautious about the UK’s ability to make its own regulations. after Brexit.
A Treasury spokesperson made it clear that no final decision had been made and insisted that Northern Ireland’s rights would be protected.
“The EU CBAM could only apply in Northern Ireland with the UK’s agreement and in accordance with the democratic guarantees of the Windsor framework,” they said. “The Trade and Cooperation Agreement leaves open the possibility of linking UK and EU programs. The government is considering a range of options and, while we are open to exploring links with other programs, no decisions on preferred partners have yet been made.
A Labor spokesperson declined to comment on the specific situation at the Irish border, saying only that the party supported the introduction of a UK CBAM and would “review the Government’s plans to implement it”.
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