Energy giants E.ON, RWE, EDF Npower and Aviva are amongst a coalition of 21 vitality giants and prime traders who’ve referred to as on Britain and the EU to keep up shut hyperlinks on vitality and local weather coverage after the UK leaves the bloc.
Euractiv studies that the collective are significantly eager that the Paris Agreement on local weather change will not be weakened by the UK’s departure from the EU.
The events ought to search a “deep degree of cooperation” on local weather and vitality coverage, comparable to what’s being envisaged on defence and overseas coverage after the UK leaves, mentioned the signatories of a joint letter despatched to Brexit negotiators David Davis and Michel Barnier.
“We welcome the intention for prioritisation of safety and defence within the negotiations and in addition urge you to increase this dedication to combatting local weather change,” the coalition mentioned within the joint letter, dated 20 April.
Aviva, which has a market capitalisation of Â£21 billion (€23.97bn) is an funding neighborhood listing that additionally contains the Institutional Investors Group on Climate Change (IIGCC), a gaggle of 150 activist traders with over €21 trillion in belongings, in addition to 5 of Europe’s largest vitality corporations: NPower, RWE, EDF, SSE and E.ON.
Among the variables of concern on the run as much as Brexit are commerce legislation and tariffs, nuclear security and the UK’s continued membership of the EU emissions buying and selling system for greenhouse gases.
“The integration of vitality markets and local weather insurance policies throughout Europe has enhanced vitality and local weather safety and lowered vitality payments within the UK and the EU 27,” write the signatories, calling on Brexit negotiators to “be sure that these advantages proceed sooner or later”.
Maintaining work on local weather and vitality safety, together with safeguarding the Paris Agreement on local weather change ought to be prime of the agenda on each side of the channel, they argue.
“To guarantee that is achieved, we name on you, within the Brexit negotiations, to develop a complete Climate and Energy Chapter, which covers each commerce and non-trade points,” they write.
Brexit might have a restricted impact on vitality markets in each the UK and EU in response to a brand new examine that’s optimistic about the way forward for vitality coverage. But the Court of Auditors has warned that experimental vitality analysis might undergo
Stephanie Pfeifer, CEO of the IIGCC, mentioned a complete Climate and Energy Chapter within the Brexit negotiations “would assist to handle the appreciable uncertainty inside markets” that the Brexit referendum has introduced.
“Such a sign would increase investor confidence that each the UK and the EU27 will proceed to work in a collaborative and impressive method to fight the problem of local weather change,” Pfeiffer mentioned.
Sir Philip Lowe, a former Director General on the European Commission’s vitality directorate, warned that leaving the EU’s single vitality market, will add strain on Britain to speculate extra in new electrical energy producing capability, pay larger costs – arguably with much less safety of provide – and settle for a much bigger function for the state within the vitality sector.