Starmer’s EU Sellout Deal On Carbon Pricing To Hike Electricity Bills ‘By £200 Million Per Year’ – Guido Fawkes

Starmer’s EU Sellout Deal On Carbon Pricing To Hike Electricity Bills ‘By £200 Million Per Year’

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While there is panic over the fishing rights surrender the EU-UK deal features significant alignment on carbon pricing. The key points as agreed by Starmer and the EU are:

• UK Emission Trading Scheme (UK ETS) and the European Union Emission Trading System (EU ETS) to be linked.
• Scope includes “electricity generation, industrial heat generation (excluding the individual heating of houses), industry, domestic and international maritime transport and domestic and international aviation.” Should provide for a “procedure to further expand the list of sectors to be covered by the linking agreement”…
• The UK’s cap and reduction pathway “should be at least as ambitious as the European Union cap and the European Union reduction pathway.“
• UK will pay the EU “to support the relevant costs associated with the European Union’s work in this policy area.“
• Arbitration: “the Court of Justice of the European Union is the ultimate authority for all questions of European Union law.“
• The UK gets to “contribute appropriately for a country that is not a member of the European Union to the decision-shaping process of European Union legal acts in the fields covered by the obligation to dynamically align… These rights would not extend to participation in the work of the Council or its preparatory bodies.” The UK will be ignored…

Guido spoke to independent energy consultant Kathryn Porter who sounded the alarm over higher prices:

“Since Keir Starmer announced his intention to harmonise the UK and EU ETS, UK carbon prices have increased significantly. Full harmonisation could end up adding more than £200 million per year to electricity bills.

UK carbon prices have been lower as a result of a surplus of allowances due to de-industrialisation. It’s hard to see how we will benefit from harmonisation. The “level playing field” sounds like a mechanism to remove the UK allowances surplus with no benefits to UK consumers.“

Within the EU prices are currently roughly £10/ptCO2 higher than here. ‘Savings’ spin from Starmer and the EU is centred on the introduction of the bloc’s carbon border tariffs next year. In essence energy costs are being immediately hiked for the UK in return for a future tariff reduction – even on those who don’t export to the EU – while the UK also agrees to take EU rules, ECJ jurisdiction, and pay the EU for the pleasure. The EU will further decide who in the UK is exempt from its hiked carbon pricing. Got all that?

The Institute of Economic Affairs’ energy analyst Andy Mayer adds: “The smarter strategy would be to retain control of our own carbon policy, and cut it drastically to compete with the EU, encouraging jobs and growth, including in low carbon technologies also impacted by high energy prices.” Not one for the Labour Rejoin cabal…