On 3 September, CCS Europe, alongside 55+ other leading associations, businesses and civil society groups, sent a joint letter 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 Emissions Trading Systems (ETS), but they warn that without urgent steps to coordinate on Carbon Capture, Utilisation and Storage (CCUS), the ambition risks getting stuck in the pipeline. They stress that it is time to fast-track cooperation on CCUS as part of the ongoing discussions on linking the EU and UK ETS.

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, storage and regulatory alignment which are key elements for ensuring clarity and predictability for industrial actors investing in decarbonisation.

"Establishing a Working Group on CCUS would allow ETS linkage and cross-border CO2 trade discussions to progress in parallel, accelerating the development of cross-border projects," the letter states. "This will benefit both EU and UK industrial stakeholders by enabling them to decarbonise their activities while staying competitive."

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 in ETS linkage negotiations, policymakers can accelerate the rollout of crucial CO2 cross-border infrastructure.

You can view the joint letter here.