Brussels, 3 September 2025
Today, ERGaR co-signed, together with 55+ other leading businesses, associations, and civil society groups, the CCSA letter to deliver a clear message to Brussels and London: it’s time to fast-track cooperation on Carbon Capture Utilisation & Storage as part of the ongoing discussions on linking the EU and UK Emissions Trading Systems (ETS).
In a joint letter sent to European Commission President Ursula von der Leyen, UK Prime Minister Keir Starmer, and senior EU and UK leaders, the signatories welcome progress towards linking the EU and UK ETS systems. But they warn that without urgent steps to coordinate on Carbon Capture, Utilisation and Storage (CCUS), the ambition risks getting stuck in the pipeline.
The signatories call for the immediate creation of a dedicated Working Group on CCUS under the Trade and Cooperation Agreement’s Specialised Committee on Energy. Such a forum would provide structured dialogue on cross-border CO2 transport and storage and regulatory coordination, key elements for ensuring clarity and predictability for industrial actors investing in decarbonisation.
The letter outlines key recommendations for the EU and UK’s preparatory work on ETS linkage, including:
- Ensuring mutual eligibility of emission allowances across both systems and joint oversight of registries and auctions
- Developing compatible market stability mechanisms and aligning phase-out of free allowances
- Recognising CO2 transport and storage under both regulatory regimes, to enable access to UK storage sites and deliver significant cost savings for EU emitters
- Coordinating standards on CO2 specifications, metering, carbon removals integration, and certification methodologies
With both the EU and UK highlighting CCUS as a pillar of their decarbonisation strategies, the signatories stress that now is the opportune moment to act. By confirming the role of CCUS into ETS linkage negotiations, policymakers can accelerate the rollout of crucial CO2 cross-border infrastructure.
Read the full letter here.
Read the CCSA press release here.