TRADE AND COOPERATION AGREEMENT BETWEEN THE EU, EUROPEAN ATOMIC ENERGY COMMUNITY AND THE UNITED KINGDOM

The Trade and Cooperation Agreement between the EU and UK was reached on 24 December 2020 and came into force at the end of the post-Brexit transition period on 31 December 2020.

This summary reflects changes of interest to the environment only.

What has changed?

The Agreement aims to set out the future relationship between the EU and UK, while providing a framework for future agreements. Elements of the agreement are relevant to the environment and climate change.

Level Playing Field and Competition

The Agreement applies conditions in order to ensure a level playing field for open and fair competition, to ensure that trade and investment take place in a way conducive to sustainable development.

Effectively, environmental protection may not be reduced from the current levels where this impacts on trade. Should either party apply higher standards of protection if the other does not, ‘rebalancing measures’ may be applied. These measures would be used to address any trading advantage the party with lower standards may gain.

A panel of experts will be established to monitor whether the UK or EU have regressed in standards.

Future environmental policy must take relevant scientific and technical information, international standards, guidelines and recommendations into account.

Environmental Regulation

Neither the UK or EU may weaken or reduce (in a manner affecting trade or investment between the UK and EU) levels of environmental or climate protection below that in place on 31 December 2020. This includes any future commitments made through targets already in place.

The Agreement includes a general commitment to strive to increase levels of environmental and climate protection.

The Agreement does not prevent either party from applying additional regulation for a variety of purposes, including to protect occupational health and safety; public safety; the environment; energy security or to address climate change.

Energy

The UK and EU are required to cooperate regarding the security of electricity and natural gas supplies. Both parties are required to assess risks on supply security, while communicating and coordinating on risk preparedness and emergency planning.

Energy infrastructure connecting the UK and EU must receive timely development and be interoperable. Interconnectors between the UK and EU must be used efficiently.

Energy Sustainability and Renewables

The UK and EU are required to promote energy efficiency and the use of renewable source energy. The agreement commits the UK to targets under the National Energy and Climate Plan.

Both the UK and EU are required to support electricity from renewable sources where this is integrated with the electricity market. Support for bioliquids, biofuels and biomass should only take place where robust criteria for sustainability and greenhouse gas emissions saving are met.

The UK and EU are required to cooperate on the development of offshore renewable energy projects, including by sharing best practices. A specific EU-UK forum must be established to achieve this.

The UK and EU are required to cooperate in the development of international standards on energy efficiency and renewable energy.

Energy subsidies may not be used to relieve organisation’s from their liabilities as a polluter.

Offshore Risk and Safety

Information is required to be shared to ensure the safety and environmental protection of offshore oil and gas operations, including preventing major accidents.

Energy Pricing

Energy goods or raw materials may not be sold to the other party at prices greater than for the domestic market.

Carbon Pricing

The UK and EU are required to maintain effective systems of carbon pricing.

Principles of Environmental and Climate Regulation

The UK and EU commit to the following five principles:

1. The principle that environmental protection should be integrated into the making of policies,
2. including through impact assessments;
3. The principle of preventative action to avert environmental damage;
4. The precautionary approach;
5. The principle that environmental damage should as a priority be rectified at source; and
6. The polluter pays principle.

The EU and UK also commit to continued application of environmental impact assessments and strategic environmental assessment for projects, plans and programmes.

Multi-lateral Environmental Agreements

Articles 8.4, 8.5, 8.6, 8.7, 8.8, 8.9 and 8.10 of the Agreement reaffirm various international commitments, including the Paris Agreement on Climate Change, Convention on Biological Diversity and on trade in timber and timber products.

Aviation

Heading two, Title I of the Agreement concerns air transport. This aims to apply shared and cross-compatible arrangements for air transport and safety.

Health Security

The UK and EU are required to inform each other of serious cross-border threats to heath. This includes biological, chemical or environmental hazards that are life-threatening or otherwise serious. Where these threats exist, the EU may grant the UK access to the Early Warning and Response System (EWRS).

Chemicals

Annex TBT-3 applies requirements on the trade, regulation, import and export of chemicals.

Both parties must continue to apply the Global Harmonised System (GHS) of classification and labelling for chemicals. The UK or EU must provide the other party the opportunity to express views on proposed classifications. 

EUROPEAN UNION (FUTURE RELATIONSHIP) ACT 2020

The European Union (Future Relationship) Act 2020 implements Trade and Cooperation Agreement between the UK and EU (‘Trade and Cooperation Agreement’) in part. This agreement was reached on 24 December 2020 and came into force on 31 December 2020.

What has changed?

Non-food Product Safety Information

Part 2 provides ongoing arrangements for the disclosure of non-food product safety information supplied by the European Commission or by UK authorities to the European Commission. These disclosures may be undertaken to ensure health and safety, protect consumers and/or ensure protection of the environment.

Use of Relevant International Standards

Schedule 4 amended legislation that sets out minimum standards on a range of products, including:

• General Product Safety Regulations 2005;
• Supply of Machinery (Safety) Regulations 2008;
• Ecodesign for Energy-Related Products Regulations 2010;
• Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment Regulations 2012;
• Explosives Regulations 2014;
• Pyrotechnic Articles (Safety) Regulations 2015;
• Electromagnetic Compatibility Regulations 2016;
• Simple Pressure Vessels (Safety) Regulations 2016;
• Lifts Regulations 2016;
• Electrical Equipment (Safety) Regulations 2016;
• Pressure Equipment (Safety) Regulations 2016; and
• Equipment and Protective Systems Intended for Use in Potentially Explosive Atmospheres Regulations 2016.

The amendments made revise references to standards for product conformity purposes. These allow the application of national standards adopted by the UK or international standards adopted by an international standardising body.

These international standardising bodies are those defined under the World Trade Organisation’s 1994 Agreement on Technical Barriers to Trade.

Access to International Road Haulage Markets

Licences required for international road haulage by UK hauliers must satisfy requirements under Annex Road-1 to the Trade and Cooperation Agreement.

Data from electronic registers of Great British and Northern Irish tachograph data may be disclosed where required by the Trade and Cooperation Agreement.

Powers to make Regulations regarding the Movement of Goods into or out of the UK

From 1 March 2021 the Act allows regulations to be made requiring monitoring or the control of goods that pose or might pose a risk to public health or public safety, national security or the environment.

PROTOCOL ON IRELAND/NORTHERN IRELAND (DEMOCRATIC CONSENT PROCESS) (EU EXIT) REGULATIONS 2020

The Protocol on Ireland/Northern Ireland (Democratic Consent Process) (EU Exit) Regulations 2020 amended the Northern Ireland Act 1998 on 10 December 2020.

These regulations apply to Northern Ireland only.

What will change?

These regulations implement the mechanism for obtaining democratic consent in Northern Ireland to continue to apply the Protocol on Ireland and Northern Ireland (also known as the Northern Ireland Protocol). The protocol was agreed alongside the Brexit Withdrawal Agreement and avoids a hard border between Ireland and Northern Ireland by keeping Northern Ireland in the EU single market.

Democratic Consent Process

The Northern Ireland Protocol requires the Northern Ireland Assembly to vote periodically (commencing 31 December 2024) to either extend or end Northern Ireland’s alignment with EU law. This is termed the ‘democratic consent process’.

Amendments by the Protocol on Ireland/Northern Ireland (Democratic Consent Process) (EU Exit) Regulations 2020 apply legal arrangements for the democratic consent process in Northern Ireland.

Articles 5 to 10 of the Northern Ireland Protocol will cease to apply if a vote by Northern Ireland’s political representatives concludes they are no longer desirable. The first consent process will take place in late 2024 and will be repeated every four or eight years depending on whether consent (if given) is given on a simple majority or a cross-community basis respectively.

If the Assembly does not pass the consent resolution by a simple majority, Northern Ireland’s alignment with EU law will come to an end two years later. If the Assembly passes the consent resolution, then Northern Ireland’s alignment with EU law will continue.