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Jurisdiction(s):
United Kingdom
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Key definition
Brexit definition

What does Brexit mean? Brexit is the practical shorthand in legal drafting and advice for the United Kingdom’s withdrawal from the European Union and the legal, regulatory and trading changes flowing from it. It covers the UK’s cessation of EU membership on exit day (31 January 2020) and the cessation of the EEA Agreement’s application, the end of the implementation/transition period on IP completion day (31 December 2020), and the commencement, expiry or variation of post‑withdrawal trading and regulatory arrangements, including the UK‑EU Trade and Cooperation Agreement, the Windsor Framework (amending the Northern Ireland Protocol), and UK agreements with third countries...

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UK ETS: scope of regulated activities, operators and installations, including aviation; free allocation, small-emitter opt-outs, EII carbon leakage protections and exemptions

Practice notes
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From the close of the Brexit transition (IP completion day) on 31 December 2020, the UK stopped taking part in the EU’s Emissions Trading System (ETS). The EU ETS limits the overall volume of specified greenhouse gases emitted by factories, power stations and other installations in scope by issuing tradable allowances under a cap-and-trade model. It began with Phase I in 2005 and is founded on Directive 2003/87/EC, later amended by Directive 2009/29/EC. Phase III of the EU ETS ran from January 2013 to 2020. Phase IV spans 2021–30. For further details on the EU ETS and carbon trading, see Practice Notes:

  • EU Emissions Trading System (ETS) Phase IV—Directive 2003/87/EC
  • EU Emissions trading system—outline
  • EU Emissions Trading System (ETS) for aviation
  • EU Emissions Trading System (ETS) for maritime transport
  • EU Emissions Trading System (ETS) II for buildings, road transport, and additional sectors
  • Carbon markets—basic principles and future developments
  • Carbon markets—carbon trading agreements
  • Carbon markets—price of Carbon
  • Carbon markets—international emissions trading schemes
  • When is a greenhouse gas permit required under Phase III EU ETS? [Archived]

Before Brexit,...

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Web page updated on 22/05/2026

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