EU vs UK carbon price (2026)

Two systems separated at Brexit: EU ETS ≈€80.01, UK ETS ≈£55. A linkage deal was announced in 2025 — here's what converging prices mean.

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Side by side

	EU ETS	UK ETS
Price	€80.01 (July 13, 2026)	≈£55 (mid-2025, ICE)
Extra levies	—	Carbon Price Support £18/t on power
Border measure	CBAM live since 2026	UK CBAM planned 2027
Linkage	announced 2025 — UK price expected to converge upward toward the EUA

What linkage means for UK industry

Linked markets trade one effective price. UKAs have historically traded £10-20 below EUAs; convergence implies a step-up in UK carbon costs toward €80.01-level. UK plants get EU-CBAM relief in exchange (no border charge on UK exports to the EU). Net effect: the cheap-carbon window for UK industry is closing — efficiency investments made before convergence are bought at a discount.

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Every tonne you stop emitting is a tonne you don't have to report: cutting heat loss is a measurable, auditable Scope 1 reduction that flows straight into EU ETS, CBAM and your ESG / CSRD disclosures — not an offset, an actual emission cut.

FAQ

Questions on this topic

Why is the UK carbon price lower than the EU's?

A smaller, less liquid market with its own supply settings; UKA has mostly traded at a discount to EUA since 2021.

Will UK and EU prices become one?

The 2025 announcement targets linking the two ETS — once live, allowances become fungible and prices converge. Most analysts expect the UK price to move up toward the EUA, not vice versa.

Does UK CBAM copy the EU's?

Same idea — a border carbon price on iron & steel, aluminium, cement, fertilizers, hydrogen — planned from 2027, with design details (tax-style rather than certificates) still being finalised.