2 minute read

BREXIT UPDATE: ELECTRIC VEHICLES AND RENEWABLE ENERGY

1/ Preferential Electric Vehicle & Battery Tariffs

The UK and EU have agreed a preferential tariff for UK-produced electric vehicles (EVs) and batteries. Prior to the agreement, the EU were set to insist on a 10% tariff on EVs produced in the UK and with more than 45% of their original parts made outside the UK. This concession will assist in keeping down the cost of manufacturing EVs and batteries in the UK and assist the Government in its commitment to ban the sale of new diesel and petrol vehicles by 2030.

and gas quality. The UK and EU have also agreed to develop hybrid projects in the North Sea, combining interconnectors and offshore windfarms to realise the region’s potential and create a reliable network to deliver a ‘Net Zero’ future.

4/ Energy Trading Arrangements

Few would argue that the world is in a period of flux. Carbon neutrality is not only something that many are striving for in their personal pursuits, but also from a business perspective. For some, this is an opportunity to create competitive or economic advantage through enhancing their green credentials. Couple this with the looming 2030 deadline that will see the end of the sale of new diesel and petrol vehicles, and the next decade will see huge changes that SME businesses in Leicester and Leicestershire must navigate.

The EU–UK Trade and Cooperation Agreement is a free trade agreement signed on 30 December 2020, between the European Union, the European Atomic Energy

Community and the United Kingdom. It has been applied provisionally since 1 January 2021, when the Brexit transition period ended, and that provisional application has since been extended to 30 April 2021.

Within its 1,246-page document and accompanying explanatory summary, it contained widereaching provisions in areas including trade, intellectual property, taxation and public procurement.

The Business Gateway Growth Hub – in partnership with Freeths LLP in Leicester – have identified four provisions of particular interest to those SME businesses involved in the electric vehicle and/or renewable energy markets. Here’s what you need to know:

2/ Freedom Of Electric Vehicle-Related Information And Innovation

The agreement provides that neither party can restrict access to markets for motor vehicles, equipment or parts approved by either party on the grounds that the product being exported contains a new technology or feature that the other party has not yet regulated. The UK and EU have also agreed to cooperate and exchange information in relation to advanced emission reduction and emerging vehicle technologies.

3/ Enhanced Cooperation In Renewable Energy

The UK and EU have agreed to enhance their cooperation in relation to renewable energy and security of energy supply. Measures include implementing new frameworks for development of offshore energy generation, efficient use of gas and electricity interconnectors (discussed below), gas decarbonisation

There is an agreement to develop and implement a new and efficient energy trading arrangement by April 2022. This includes ensuring that capacity allocation and congestion management of energy interconnectors (high power electricity cables linking the GB grid to electricity networks in other countries) is market-based, transparent and nondiscriminatory.

It is hoped that these provisions will enable both the EU and UK to continue to develop as world leaders in renewable technologies and to allow both parties to meet their respective carbon reduction targets in accordance with the Paris Agreement.

Information provided by Freeths LLP. For further information see the Freeths Brexit exchange at www.freeths.co.uk/brexitexchange/ or to speak to one of the team visit www.freeths.co.uk

Information correct as at Friday 26 March 2021.

FURTHER SUPPORT:

For more information on EU Support visit www.bizgateway.org.uk/tradingwith-europe-support www.bizgateway.org.uk

This article is from: