For the first time since Brexit, the United Kingdom and the European Union have reached a consensus to move forward with the integration of their electricity markets. This decision, formalised in the Joint Statement, aims to enhance energy security amid global volatility and the pressing need to accelerate the clean energy transition.
“Today, we have decided to explore the United Kingdom’s participation in the EU electricity market; it is good for energy stability, for our common security, and for lowering prices,” affirms the President of the European Commission, Ursula von der Leyen.
The agreement also includes the UK’s potential participation in the EU Energy Interconnection Platform, a move that will improve cross-border electricity flows and further support energy price stabilisation. Both sides committed to developing a regulatory framework that ensures long-term certainty for investors in renewable energy infrastructure.
The North Sea: At the Heart of Renewable Expansion
The North Sea stands out as a strategic hub for offshore wind development. With an estimated capacity potential of 300 GW by 2050, it is set to become a cornerstone of Europe’s renewable energy ambitions.
“We know that a bigger market will help to lower energy prices and attract more private investment,” stresses von der Leyen, emphasising the vast potential of “renewable, cheap, and homegrown energy” offered by the North Sea.
The UK and EU have also agreed to jointly develop major renewable projects in the region, focusing on offshore transmission infrastructure. This will facilitate better integration of wind power and reduce transmission bottlenecks that currently limit the scalability of such projects.
The British Prime Minister added that “this agreement will not only facilitate new investments in clean energy but also boost the creation of thousands of jobs in the renewables sector,” directly linking the partnership to the UK’s industrial revitalisation goals.
Hydrogen Cooperation and Decarbonisation Commitments
In a significant step forward, the Joint Statement confirms the commitment to advance cooperation on renewable hydrogen, including the development of common certification standards to enable future trade. This aligns with both parties’ long-term vision of decarbonising hard-to-abate sectors such as heavy industry and transport.
Both sides will also work together to reduce dependency on fossil fuels and strengthen collaboration to achieve their net-zero targets by 2050, which is in line with the Paris Agreement.
Linking Carbon Markets: A Step Towards Decarbonisation
The UK and EU reaffirmed their intention to link their respective Emissions Trading Systems (ETS), creating the world’s second-largest carbon market after China. This integration will enable more efficient carbon pricing and reduce compliance costs for businesses operating across borders.
“An integrated system is a major step towards decarbonisation and will create a more level playing field,” von der Leyen explains. This will directly contribute to the ambitious climate neutrality goals and ensure that both economies remain competitive while progressing toward a sustainable future.
Strategic Investments and Energy Price Reductions
The agreement opens the door for the UK’s participation in the European SAFE fund, a financing instrument with €150 billion allocated for joint procurement and investment in strategic energy projects. This will support the development of new interconnections, expand renewable generation capacity, and modernise energy transmission networks.
“The agreement paves the way for the UK to participate in SAFE, enhancing our joint capacity to respond to energy security challenges,” confirms von der Leyen.
A Shared Commitment to Net Zero and Energy Security
This historic agreement represents a turning point in UK-EU relations, positioning both partners as global leaders in the fight against climate change.
“This agreement is not only good for our citizens; it also sends a strong signal of our shared commitment to the energy transition and the fight against climate change,” von der Leyen concludes.
With this strategic partnership, London and Brussels reaffirm their role as guarantors of Europe’s energy security, accelerating decarbonisation through massive investments in renewables, advanced technologies, and modernised electricity systems.
Read the full joint statement here:
UK_EU_Summit_-_Joint_Statement
