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The energy sector has been one of the most affected by the significantly altered dynamics of the European Union-United Kingdom relationship after Brexit. During decades of economic and commercial exchanges, London created an intricate web of energy interdependence with the European nations, and after the post-Brexit deal, the two sides need to reconstruct the core elements of such a relation while reconciling their national interests and in the general view of regional stability. One of the main challenges in this dynamic is represented by energy interconnectors that provide a physical link for ensuring energy security and facilitating trade. The United Kingdom has already invested in new interconnectors to diversify its energy sources, and together with the EU, it is trying to establish a framework that addresses concerns related to capacity, pricing, and access.

Beside that, another area of contention between London and Brussels is the regulation of the energy markets. Before Brexit, the EU’s regulatory framework has historically played a significant role in shaping the European energy landscape, thus affecting the UK as well. After the 2016 referendum and the post-Brexit deal, the UK has to face the decision of whether to align with EU regulations or pursue its own path on the matter, a choice that has clear implications for market access, investment, and consumer protection in the country.

The EU Green Deal and the shared target for the transition to a low-carbon economy present both opportunities and challenges for bilateral cooperation between Brussels and London, as both sides committed to achieving net-zero emissions by 205o. In such a dynamic, the energy sector will play a pivotal role in the green transition. The EU and the UK can collaborate on research and development while sharing best practices and investing in renewable energy infrastructure, which can help accelerate further progress in the sector and foster a more sustainable future for both sides. We should also mention nuclear cooperation, as on 31 December 2020 an agreement between Euratom and the UK has been signed to promote the safe and peaceful uses of atomic energy, with a commitment from both sides to comply with international non-proliferation obligations and to maintain a high level of nuclear safety standards. This treaty also involves cooperation on regulatory aspects of the peaceful use of nuclear energy and provisions for research and development. Thanks to that, the UK can continue to participate in the ITER project through the Euratom Fusion for Energy (F4E) joint undertaking.

The potential political reset in the UK-EU relations pursued by the new Labour government at Downing Street 10, led by Keir Starmer as the prime minister, can give a relevant boost to the cooperation between London and Brussels on many issues, and energy is one of them for sure. The Foreign Secretary of the new British government, David Lammy, already highlighted the potential of focussing on climate and energy during the presentation of his priorities for “reconnecting” the UK to the European Union. Critical raw materials can also become a shared focus for the two sides, with Europe as a continent securing sources for the industrial needs of the future.

Written by: Francesco Marino