EU pushes for new mechanisms to enable energy trade with UK

The European Commission is keen for stronger co-operation on energy issues post-Brexit, according to its draft mandate for upcoming trade negotiations with the UK.

The document, published this week, states that an objective of the new trade partnership should be the continued delivery of “cost efficient, clean and secure” supplies of electricity and gas, based on competitive markets and non-discriminatory access to networks.

This co-operation around energy should be enhanced in a bid to promote the development of a “sustainable and safe low-carbon economy”, including investment in renewable energy and energy efficiency, the document stresses.

The “transparent, non-discriminatory and predictable business environment” that the mandate envisages should include rules that “support and further promote” trade and investment in the renewable sector.

The document also pushes for new mechanisms to help maintain efficient energy trading between the EU and the UK across electricity and gas post-Brexit.

And it says the envisaged trade partnership should provide for a framework to facilitate technical cooperation between EU and UK electricity and gas networks operators.

“Taking account of the fact that the United Kingdom will leave the internal market in energy, the framework should also include mechanisms to ensure as far as possible security of supply and efficient trade over interconnectors over different timeframes.”

On carbon pricing, the draft negotiating mandate says the negotiations should consider the UK linking into the EU’s emissions trading system.

This would include provisions for potential increased levels of ambition for the EU in terms of emissions reduction for the ETS.

The UK has yet to publish its negotiating strategy.