The Energy Sector Implications of Brexit Insight_e Hot Energy Topic #20, January 2017
On June 23rd, the UK voted 51.9% to 48.1% to leave the European Union. While the referendum outcome was not legally binding, the broad political consensus that has since emerged across both Remain and Brexit camps has been that the will of the majority must be upheld. So while the UK leaving the EU could be considered inevitable, and has continued to be reinforced with the political mantra of ‘Brexit means Brexit’, it is not clear what this exit will look like.
A recent speech by Theresa May did set out negotiating principles, including not seeking membership of the Single Market. However, this will be a long negotiation with the 27 remaining Member States, with the UK facing at least 2 years of uncertainty regarding the outcome. In view of the most likely Brexit outcomes, this paper seeks to explore what the implications might be for energy and climate policy in the UK and the EU.