Columbia Group welcomes U.K.-EU alignment on ETS, but …

Philippos Ioulianou, managing director of Columbia Group’s EmissionLink

Columbia Group says that it welcomes a UK government announcement that it isto link its emission trading system with the EU and is urging other countries to follow suit,but warns that linking emissions trading schemes does not guarantee emissions reductions.

The recent move to join the U.K. ETS with the EU has resulted in an 8% rise to carbon prices, but Philippos Ioulianou, managing director of Columbia Group’s EmissionLink, says this will be a temporary rise with prices going back down eventually..

“The idea that linking ETS schemes alone drives significant cuts is a misconception,” says Ioulianou. ‘We’ve seen a price increase since the EU-UK link-up, but no guaranteed emission drop. Market tools must be backed by clear targets, regulatory support, and real-world actions.”

While the U.K.-EU alignment offers much-needed certainty and supports stronger business cases for green investment, the global picture remains fragmented. Shipping companies, for example, must comply with multiple overlapping frameworks, including the International Maritime Organisation’s Carbon Intensity Indicator (CII), the EU ETS, and FuelEU Maritime regulations, all with separate reporting systems.

“These overlapping obligations lead to confusion, duplication, and inefficiency,” says Ioulianou. “But they also highlight the urgent need for greater international coordination. What we often see in shipping is a race to comply with the latest regulation, instead of following a clear, long-term decarbonisation plan. We need to stop chasing policies and start leading with a strategic direction toward net zero.”

With the IMO’s NetZero Act under discussion, Columbia Group is calling for national schemes to integrate into a global system.

“We must all recognize the energy transition comes with a high cost, but also with high stakes. Collaboration is no longer optional, it’s essential,” added Ioulianou.