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Great Britain will start its own emissions trading scheme on May 19 to underline the country's climate protection ambitions.
British companies point out, however, that there is no link with the EU Emissions Trading System (ETS).
The market is therefore less liquid, which could affect the goal of reducing pollutants.
Within the EU system, in which British companies traded until Brexit at the end of 2020, prices are meanwhile rising to ever new heights.
The ETS sets a price for carbon dioxide emissions in industry.
The total output is capped by the allocation of certificates to companies such as energy suppliers, steel or cement producers.
Anyone who emits more than the certificates allow must buy more.
Conversely, companies can sell parts of their papers if they no longer need them as a result of a sustainable reduction in carbon dioxide emissions.
The tradable output will be gradually reduced.
This shortage is intended to provide an incentive for clean technologies through rising prices and to reduce carbon dioxide emissions.
Johnson wants to distinguish Great Britain
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With Brexit, the British broke away from the EU system.
"Great Britain played a key role in the development of the EU ETS," emphasized the government in an official introduction to the new system.
She wants to create continuity with her own model.
"We urge the government to establish a link between the new UK ETS and the EU ETS as soon as that is feasible," said a letter to a number of competent ministers signed by more than 40 industry associations.
They range from the industrial association CBI to the chemical and ceramics industry to associations for renewable and wind energy.
The move would help both sides, as a larger market would emerge, which would promise more liquidity and thus better pricing.
In the medium term, this will help the climate.
The certificate system is one of the steps the UK is taking to achieve its statutory target of zero net greenhouse gas emissions by 2050.
Prime Minister Boris Johnson also sees an ambitious climate program as an opportunity to raise the profile of the country internationally after leaving the EU.
He is particularly counting on the COP26 climate summit in Glasgow in November.
Emission certificates make up a significant part of the costs
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But despite the reference in the treaty on separation with the EU that both sides are striving for a close connection in emissions trading and that no further concessions are associated with this, concrete discussions between London and Brussels have so far failed to materialize.
British ministers have only vaguely spoken of the goal of “international connections” in recent months.
Companies are primarily concerned with the considerable uncertainty surrounding prices and possible distortions in the smaller market. Producers and suppliers would have to sign binding contracts without even having an idea of the prices of the emission certificates, which now account for a significant part of their costs, the head of the chemical industry association, Steve Elliott, warned Anne-Marie Trevelyan, Minister of Energy, in April . Waiting is not the solution, as many companies have strict guidelines for securing their emissions with certificates.
The latest price hikes in the EU ETS show what influence the certificates can have on costs.
At the beginning of May the paper was quoted for the first time over 50 euros per bin, an increase of more than 50 percent since the beginning of the year.
Until the end of 2020, the price had never risen above 30 euros.
Emissions trading is to be expanded
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Analysts expect the rally to continue.
This would be ensured by further tightening of the climate targets.
Ultimately, the emission price must be high enough that the EU can achieve the goal of net emissions of zero within 30 years, said Mark Lewis, strategist at BNP Paribas.
Thanks to rising prices, more and more companies would cut emissions, for example by replacing fossil fuels with renewable sources.
A price of 90 euros per ton by 2030 would therefore not be surprising, according to Lewis.
The market model is also attracting interest elsewhere.
After several regional tests, emissions trading for the Chinese market will start in Shanghai in June.
Meanwhile, the EU is preparing to expand its system. “We will not only use emissions trading for energy generation and industry, but also for transport and buildings,” Commission President Ursula von der Leyen announced at a climate summit with the US government at the end of April. The system could also be used for shipping.