EU and UK near draft deal to link carbon markets, with derivatives issue unresolved
The EU and UK are in the final stages of a deal to link their emissions markets, with emissions caps, supply controls and free permits settled, people familiar with the negotiations said. Financial derivatives remain the only outstanding issue, and the agreement is expected to be announced at the Nov. 20 leaders’ meeting. The proposed linkage would allow mutual recognition of permits but would not automatically grant carbon border tax exemptions. Both sides would still need to ratify the deal.