STORY
The European Union has said talks on linking the UK and EU emissions trading systems have been affected by political developments in Britain. EU climate commissioner Wopke Hoekstra said Brussels would need time to assess how the UK situation changed the prospects for the negotiations.
The discussions are part of the wider post-Brexit relationship between the UK and the EU and would be significant for businesses operating under carbon pricing regimes. Hoekstra said the EU would have to calibrate its approach before deciding how talks should proceed.
The issue comes as the Government continues to deal with the consequences of Sir Keir Starmer’s resignation announcement and the expected transition in Labour leadership. EU officials have indicated that the substance of the talks remains important, but that the political timetable in London is now a relevant factor.