The UK’s departure from the European Union may have major implications for future UK and EU climate policy. Although the UK Government has signalled its intention to stick to its existing carbon reduction commitments it remains to be seen how Brexit may impact on this. It is also uncertain whether the UK will remain a member of the EU Emissions Trading System after Brexit.
The UK’s exit from the Single Market is also likely to have an impact on trade for low-carbon goods with the European Union.
Over the coming months the Institute will be analysing the economic and policy implications of Brexit.
Publications and commentaries
This policy brief analyses global trends in carbon taxation and differences in tax design around the world to draw out lessons for the design of a possible new carbon tax for the UK, as the country plans how to meet its ambitious new net-zero emissions target and how it prices carbon after Brexit. read more »
This paper develops a novel theoretical tool with which a jurisdiction can evaluate the economic gains it can expect to obtain by linking its emissions trading system (ETS) to one, two or many ETSs at the same time, and proposes a reason why the global market remains a distant dream. read more »
The structural shifts underway to tackle climate change and other environmental issues mean there is huge potential for further growth in green finance despite challenges ahead, writes Roger Gifford for the Sustainable Finance Leadership Series. read more »
To tax or to trade – that is the question. Following the October Budget, and as Brexit looms, Josh Burke assesses the policy landscape around carbon pricing in the UK. read more »
This submission was made to Defra’s consultation on environmental principles and governance after the UK leaves the European Union. read more »
GIB going, going, gone! The future of the Green Investment Bank and sustainable investment in the UK
The sale of the government-backed Green Investment Bank (GIB) for £2.3bn to a consortium led by Macquarie Group Limited has been completed this week. The sale has been met with criticism, … read more »
The future of the UK’s trade with the EU and beyond is currently uncertain. What is certain is that the UK will need to secure trade deals to guarantee its … read more »
Presentation given at ‘The impact of Brexit on the UK and European energy markets’ conference organised by Florence School of Regulation, European University Institute on 30 March 2017.
As the UK prepares for Brexit, its future participation in the European Union Emissions Trading System (EU ETS) has yet to be decided. Ian Duncan, Conservative MEP for Scotland and … read more »
The cost of climate change mitigation in the UK will increase without a free trade agreement in low-carbon equipment with the European Union say Maria Carvalho and Damien Dussaux in this commentary article. read more »
Submission to inquiry by the House of Commons Select Committee on Business, Energy and Industrial Strategy Committee on ‘Leaving the EU: negotiation priorities for energy and climate change policy’
This submission to the Business, Energy and Industrial Strategy Committee’s inquiry on Leaving the EU looks at which aspects of EU policy should be retained and the potential impact of Brexit on Paris Agreement pledges. read more »
The UK has played an important role in shaping and advancing European action on climate change. Without it, other Member States will find themselves picking up the slack or the EU will miss its greenhouse gas target for 2030, write Maria Carvalho and Sam Fankhauser. read more »
Presentation given at the Britain and Europe: Towards Brexit? LSE Workshop on 6 December 2016.
Submission to the inquiry on ‘Brexit: environment and climate change’ by the House of Lords EU Energy and Environment Sub-Committee
This is a submission by the ESRC Centre for Climate Change Economics and Policy and the Grantham Research Institute on Climate Change and the Environment at the London School of … read more »
Submission to the inquiry by the Energy and Climate Change Committee inquiry on ‘Leaving the EU: implications for UK climate policy’
This submission explores whether the UK should seek to stay in or leave the EU emissions trading system (EU ETS) as part of Brexit negotiations. It finds that leaving the EU ETS would result in the UK losing access to low-cost emission reduction opportunities that are only available in what is currently the world’s largest carbon market. It also highlights that leaving the EU ETS to link with other existing or planned emissions trading systems could generate significant administrative costs that potentially offset any economic benefits. read more »
Presentation to the British Institute of Energy Economics Conference in Oxford on 21 September 2016.
The new UK Government under Prime Minister Theresa May has committed to boosting UK productivity, to addressing the widening wealth gap, and to supporting the transition to low-carbon … read more »