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Energy / Environment: Are you ready for Brexit?
23 January 2020

Transition period

  • The EU’s Third Energy Package (an EU legislation package serving the main purpose of deregulating the European gas and electricity markets) will still be applicable.
  • The level of environmental protection prescribed by law, including industrial emissions and climate change, will remain unchanged during the transition period.
  • The EU state aid rules still apply to energy infrastructure and other aid schemes. The Commission will still be entitled to initiate new procedures concerning aid, which has been granted before the end of the transition period, until four years after the expiration of the transition period.

Future EU/UK relationship with an agreement

  • The Political Declaration states the following principle: “[A][f]ramework to facilitate technical cooperation between electricity and gas networks operators and organisations in the planning and use of energy infrastructure connecting the Parties’ systems, and mechanisms to ensure security of supply and efficient trade over interconnectors over different timeframes“.
  • The EU and the UK are considering linking a national trading system for greenhouse gas emission allowances to the EU emissions trading system.

Future EU/UK relationship without an agreement

  • The UK is no longer bound by the EU emissions trading system and other climate legislation.
  • The UK’s emission reduction obligations have to be separated from the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement.
  • Loss of the legal framework concerning cross-border connections (interconnections) in relation to gas and electricity and shared gas and oil fields.  

Please also see the articles on the impact of Brexit in other practice areas. For a more detailed analysis of the impact of Brexit on your business, please do not hesitate to contact any of our experts.