In a significant move towards climate cooperation, over 50 European companies and industry groups are urging the UK and EU to link their carbon markets. This proposal, set to be discussed at the May 19 summit, aims to harmonize carbon pricing, prevent competitive distortions, and reduce costs for consumers on both sides. 

Currently, the UK's carbon prices are approximately £48 per metric ton, trailing behind the EU's €66 per ton. Linking the Emissions Trading Systems (ETS) would likely elevate UK prices in the short term but could shield British exporters from the EU's impending Carbon Border Adjustment Mechanism (CBAM), which imposes emissions fees on carbon-intensive imports starting in 2026. 

Energy firms like Equinor, Orsted, and RWE highlight that without linkage, UK exports of clean energy to the EU might face additional costs, potentially increasing EU power prices and emissions. 

This initiative reflects a broader push for enhanced UK-EU collaboration on climate and energy security, especially as geopolitical dynamics evolve. Aligning carbon markets could serve as a foundation for a renewed partnership, emphasizing shared environmental goals and economic resilience.