The plan says that the sectors covered by linked emissions trading should include “electricity generation, industrial heat generation (excluding the individual heating of houses), industry, domestic and international maritime transport and domestic and international aviation.”
It would also create a procedure to “further expand the list of sectors” in the future.
The agreement would “require that the cap and reduction pathway of the United Kingdom are at least as ambitious as the cap and reduction pathway followed by the Union” but also “not constrain” the EU and U.K. from “pursuing higher environmental ambition, consistent with their international obligations.”
Under the Commission’s proposal, the U.K. would get a mutual exemption from the EU’s Carbon Border Adjustment Mechanism (CBAM).
In some policy areas, the European Commission must obtain legal mandates from EU member states before it starts negotiating on their behalf. Further mandates are expected in other areas covered by the U.K.-EU reset, for example on electricity trading.
Some policy areas do not require mandates, either because they are an EU competence or because one already exists. For example, negotiations about the U.K. joining the Erasmus exchange program are likely to be covered by a provision in the existing trade agreement allowing U.K. participation in EU programs.