Brexit and Beyond

We also take a look at an exclusion from the UK Internal Market Act which has been agreed for the Welsh Government in respect of its deposit return scheme.  

As well as looking ahead to what’s on the Assembly agenda, our regular ‘Parliamentary Planner’ section highlights upcoming debates and discussion topics at other legislatures this week.  

As always, we link you through to the news stories and items of interest you may have missed.  

• Assembly Round-up 
• Finance Minister updates on North South Ministerial Council: Special EU Programmes meeting
• Motion to approve the draft Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2026 
• Questions to the Minister of Agriculture, Environment and Rural Affairs 
• Communities Minister responds to question on the Local Growth Fund
• Members’ Statements 
• AERA Committee hears departmental evidence on  the Greenhouse Gas Emissions Trading Scheme (Amendment) (Extension to Maritime Activities) Order 2026.
• Brass for Glass – UK Government grants Wales exclusion from Internal Market Act  
• This week in the Assembly 
• Parliamentary Planner
• In case you missed it… 

 

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Mr. O’Dowd told Members that the Council had received an update on the progress of the 2021-27 PEACE PLUS programme and that calls have now opened for all 22 of the programme’s investment areas. He added that, in total, 145 projects have been approved for funding, representing a commitment of €1 billion, 94% of the programme value.  

The Minister highlighted a presentation on the Shankill Shared Women’s Centre, noting that the project was awarded funding of €8·58 million from the Peace IV programme. He added that the centre had also received a prestigious EU REGIOSTARS award in Brussels in October 2025 in the category: ‘A Europe Closer to the Citizens’, which he said recognized: “… the centre's work in fostering community cohesion and delivering support for women and their families in a shared space.” 

You can read the full statement and questions from Members here:  

 

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The Minister explained to Members that: “The draft Order enables the reduction of free allocation annually during the period 2027-2030 for UK ETS operators covered by the UK CBAM. He continued: “This approach will ensure a gradual transition for UK industries from free allocation to the UK CBAM as the primary carbon leakage mitigation measure.” 

The Minister told Members that if the draft order was approved, it would make three changes to the calculation of free allocation for the 2027-2030 allocation period. In particular, the draft order provides for the adoption of updated EU benchmark values in order to calculate the amount of free allocation allowed to participants. The Minister explained that this decision to retain alignment was: “…considered in the context of the UK and EU's announcement that they will work towards linking their respective emissions trading schemes.” 

Other changes introduced by the order account for disruption caused by the COVID-19 pandemic and ensure a gradual transition for UK industries from free allocation to the UK CBAM (carbon border adjustment mechanism) as the primary measure to mitigate against carbon leakage.  

Contributing to the debate, Aoife Finnegan MLA said: “Since Brexit, the North participates in both the UK emissions trading scheme and, in respect of electricity generation under the Windsor framework, the EU emissions trading scheme. That unique position brings complexity, but it also creates opportunity.”  

She further noted that: “In 2025, participation in the EU ETS generated approximately £53·5 million in auction revenue associated with activity here. Revenue linked to the UK ETS also represents a significant sum depending on carbon prices and allocations.” She added: “If we are contributing to those schemes, it is only right that the Executive are positioned to draw down funding to help meet our climate commitments under the Climate Change Act.”  

The question was put to the Assembly and the draft order was approved. You can access the full debate here:  

 

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The Minister added that a deposit return scheme would be introduced in October 2027 which would encourage people to bring back their bottles in exchange for money. The Minister said that a similar scheme already operating in the Republic of Ireland and in other parts of Europe, had proven to be very popular. 

 

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 Communities Minister responds to question on the Local Growth Fund

 He added that he would: “…continue to discuss the issue with Executive colleagues so that we can explore solutions that will prevent some of the more detrimental impacts that the reduced Budgets proposed by the UK Government will have on community and voluntary organisations.” 

 

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Dr. Steve Aiken MLA raised the issue of defence spending on Monday, during Members’ Statements. He referenced the recent Munich security conference, noting that it: “..further highlighted the critical situation of the world that we live in…” Dr. Aiken said that the Prime Minister was: “…tackling the Treasury to increase our defence spending by up to £18 billion, but he must do more… to reach the total of 5% of GDP that many of our friends and allies in Europe already spend.” He underlined that the European Parliament had, last week agreed a €90 billion loan package to Ukraine. You can read the full statement here:  

During Members’ Statements on Tuesday, Deirdre Hargey MLA discussed: ‘Building an All-Ireland Healthcare System’. She told the Assembly that: “An all-Ireland healthcare system would allow us to pool resources, reduce duplication and negotiate better prices for medicines and equipment. Crucially, it would allow us to invest more in front-line services; in doctors, nurses and social care. For patients, especially those who live in our border communities, it would mean simpler access.”  You can read the full statement here:  

Also, during Members Statements, Diane Forsyth MLA raised the adoption of a resolution in the EU Parliament which called on EU institutions and member states to guarantee the full recognition of trans women as women in EU policy and law. Ms. Forsyth told the Assembly that: “Whilst the vote does not change any treaties or mean that there will be any immediate changes in our laws, it does shape Commission priorities and influences how equality frameworks are interpreted.” You can read the full statement here:  

 

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 AERA Committee hears departmental evidence on  the Greenhouse Gas Emissions Trading Scheme (Amendment) (Extension to Maritime Activities) Order 2026

The Committee was told by departmental officials that an interim 50% partial exemption from the UK ETS obligations will be introduced for routes between Northern Ireland and GB. Members were advised that: “…this was due to the fact that that the EU emissions trading scheme has included maritime emissions within scope since 2024 and covers 100% of emissions from voyages between EU ports in addition to 50% of those starting or ending in the EU.” 

By way of an example, departmental officials told the Committee that: “…a ferry travelling from Dublin to Liverpool would only be required to surrender allowances for 50% of its emissions, while if the partial exemptions to be introduced by the [ETS] Authority were not in place, a ferry travelling from Belfast to Liverpool would be required to surrender allowances for 100% of its emissions.” Officials described this as a “significant intervention” that will “ensure fairness and parity on carbon pricing across the Irish Sea and avoid the risk of competitive distortion locally.”    

While the Committee was told that the overall impact and transport costs are expected to be minor, precise qualification was challenging due to evidence gaps. Members noted concern at the reference to evidence gaps and decided to invite Stena Line and the UK Chamber of Shipping to give evidence in advance of the debate on the Statutory Instrument (SI). 

This means that glass bottles can be included alongside plastic and metal containers in Wales’ deposit return scheme, commencing 1 October 2027.  

The exclusion from UKIMA is subject to conditions, including: that the Welsh Government scheme must function alongside the rest of the UK's scheme for plastic and metal containers; and the transition period is extended until 2031, during which no labelling requirements or targets apply and no deposit is charged on single use glass.  

In a statement released on 12 February, the Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs, Huw Irranca-Davies, described the laying of the Deposit Return Scheme (DRS) for Drinks Containers (Wales) Regulations 2026 as: “…a major milestone on our journey towards ending throwaway culture and creating a more circular economy and delivers on our commitment in Beyond Recycling and Net Zero Wales.”  

He added that the new scheme would: “…commence a clear pathway towards the roll out of reuse, supported by the pilots which industry are committed to delivering and meaning that Wales’ scheme will reflect international best practice and continue to lead the way within the UK.” 

As reported earlier in this issue, the Minister for Agriculture, Environment and Rural Affairs confirmed during Question Time last week, that a deposit return scheme would launch in Northern Ireland in October 2027 in line with other parts of the UK.      

 

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On Wednesday, The Committee for the Executive Office will hear from the Assembly’s Clerk of EU and Interparliamentary Affairs on issues arising from EU exit relevant to the work of the Committee.  

On Thursday, the Windsor Framework Democratic Scrutiny Committee (DSC) will take evidence from officials from the Departments of Agriculture, Environment and Rural Affairs; Health; and the Economy, on a number of proposals for regulations. These include: certain production, labelling and certification rules and certain rules on trade with third countries; to simplify rules on medical and in vitro diagnostic devices and on the extension of certain data protection periods. You can view the full agenda here:  

The DSC Committee has also issued a ‘Call for Views’ on an EU Proposal for a Regulation on the welfare of dogs and cats and their traceability. The EU has indicated that it considers the proposed act to be within the scope of the Windsor Framework, and therefore may seek to add it, via the process set out in Article 13(4) of the Windsor Framework, to the list of EU laws applicable in Northern Ireland.  

The Committee ‘Call for Views’ will remain open until 8 March and is seeking views on whether applying/not applying the proposed act would have a significant negative impact specific to everyday life of communities in Northern Ireland in a way that is liable to persist. You can access the provisionally agreed text here, and the ‘Call for Views’ here.   

Also on Thursday, the Committee for Agriculture, the Environment and Rural Affairs will receive a Departmental briefing, updating on UK Common Frameworks:  Ozone Depleting Substances and Fluorinated Greenhouse Gases and on a (provisional) UK Common Framework: Integrated Pollution Prevention and Control – The Developing and Setting of Best Available Techniques (BAT).  

 

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 Parliamentary Planner

Today, during questions to the Ministry of Housing, Communities and Local Government, the Minister is expected to respond to a question regarding what plans he has for the delivery of the Local Growth Fund in Northern Ireland. 

On Tuesday, a House of Commons Westminster Hall debate will focus on the ‘Impact of the 2016 EU membership referendum on the UK’.  

A question on what discussions the Scottish Office has had with Cabinet colleagues on the potential impact of a sanitary and phytosanitary agreement with the EU on Scotland's fishing sector, has been tabled for Wednesday.  

During oral Questions in the House of Lords on Thursday, a question has been tabled to ask what assessment the Government has made of the new tax on small parcels entering Northern Ireland from Great Britain as a result of the EU’s change to the duty relief exemption. 

Also, in the House of Lords on Thursday, during a motion to take note, Members will debate the European Affairs Committee report, ‘Unfinished Business: Resetting the UK-EU relationship', which was published in November 2025. 

 

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Scottish Parliament  

On Wednesday during Portfolio Questions, the Deputy First Minister is expected to provide a response on what analysis has been undertaken of the Scottish economy’s performance since the UK withdrew from the EU. 

 

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European Parliament  

On Wednesday, the Committee on International Trade will hold a debate on: Structured Dialogue between the European Parliament and the European Commission. The debate will include an exchange of views with Maroš ŠEFČOVIČ, Commissioner for Trade and Economic Security, Interinstitutional Relations and Transparency.

 

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 In case you missed it… 

 

 

• Politico are reporting today that:  Iceland looks to fast-track vote on joining EU. The article notes that a referendum on resuming membership talks had been expected in 2027 but could come as early as this August.