Brussels, Belgium – The European Union and the United Kingdom have announced their intention to work towards linking their respective Emissions Trading Systems (ETS). This collaboration could lead to mutual exemptions from their Carbon Border Adjustment Mechanisms (CBAMs). Meanwhile, the EU is continuing to expand its carbon pricing mechanisms. The new ETS2, covering emissions from fuel combustion in buildings, road transport, and small industries, began monitoring and reporting in 2025 and will become fully operational in 2027. The European Commission is also considering further revisions to the EU ETS, including the potential inclusion of municipal waste incineration from 2028 and a review of maritime and aviation emissions scope.