00:02The European Union and the United Kingdom are preparing to reconnect their carbon markets.
00:07The move could spare manufacturers on both sides of the channel from additional carbon border charges.
00:13Carbon markets are designed to encourage industries to invest in decarbonization by putting a price on emissions.
00:21The two sides are expected to announce the conclusion of negotiations to link their respective emissions trading systems
00:27at the EU-UK summit in Brussels on 20 November.
00:30It also paves the way for goods originating in the EU and UK to be exempted from their respective carbon
00:36border adjustment mechanisms.
00:39Analysts say that linking the systems would create a larger carbon market, making it easier for companies to trade emissions
00:45permits.
00:46But closer integration would also bring regulatory obligations, as the two carbon markets have different rules on transport and buildings.
00:53The deal would represent a significant step in the post-Brexit rapprochement between London and Brussels.
