The UK and EU are set for a temporary deal to stop British businesses.
Energy bill hikes to be stopped under new deal between UK and EU
Energy bill hikes are so be PAUSED under new deal with the European Union – as UK businesses are at risk of a £800m tax. The UK and EU are set for a temporary deal to stop British businesses.
The EU’s new carbon border tax (CBAM) is being introduced from 1 January. It means British businesses will be hit by levies on exports to Europe, which are produced using polluting energy-intensive methods.
Now the two sides look set for a deal to help British businesses – and households – dodge the worst of the levy. Adam Berman, director of policy at Energy UK, said: “It’s in the interests of both sides that a solution can be found before 1 January.
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“Without a solution in place to exempt the UK from the CBAM during linkage negotiations, the design of the EU CBAM will result in higher energy bills and higher emissions in Northern Europe.
“This would be a bizarrely perverse outcome for a mechanism designed to mitigate climate change and strengthen the EU’s competitiveness. The outcome for Northern Ireland would also be problematic.
“It would be surprising if the European Commission isn’t aware of the political consequences of putting in place a new regulatory border on the island of Ireland and its implications for the Windsor Framework.”
David Henig, UK director of the European Centre for International Political Economy, said the two sides were working on temporary “mechanisms” to avoid British firms being hit by the carbon border tax, and that there were solutions “in the technical detail”.
“Work is under way, there is a feeling that Northern Ireland needs a solution, for the rest of the UK this might be more difficult, not least while the EU is working out its overall implementation,” he added.
A UK Government spokeswoman said: “We aren’t going to provide a running commentary on negotiations.”