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A report released by Chatham House on Wednesday said Britain could seek to stay in the EU's energy market and carbon emissions trading system during the transitional period if it failed to reach a retreat in Europe within two years.
The Chatham society says the EU and the UK are unlikely to reach a final agreement on the future relationship between the two sides within two years, as stipulated in Article 50 of the Lisbon Treaty.
The European Parliament has said that if an agreement can not be reached by April 2019, a transitional agreement of up to three years is required.
If this happens, "the (UK) government should seek to maintain its current situation during the transition period and stay in the EU Internal Energy Market (IEM) and the Carbon Emissions Trading System (ETS)," the report said.
The report also said that to achieve this, the United Kingdom or will need to follow the EU in terms of energy, environment and competition, and accept the regulatory and enforcement of the joint legislative framework.

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