Britain is threatening the future of EU climate change legislation after a 'Brexit no deal' clause was added to a bill being voted on in Brussels this week.

The clause would ban British industry from selling its carbon emission allowances on the market after Brexit in the event of no deal.

British representatives could back a Polish-led coalition of coal-addicted countries against members including Germany, France and the Netherlands to scupper the bill, which would delay reforms to the Emissions Trading System (ETS).

If the bill fails to pass, it would be the first time Britain has used its voting powers in the EU as an outlet for its frustrations with the deadlocked Brexit negotiations.

One EU source said: “Britain is threatening to vote against the bill. British officials are trying to find ways to avoid a stand-off but they are under political orders from London.

“This isn’t about climate, it’s about money, power and Brexit,” a second source said, “This is a crisis which could delay or wreck these vital reforms, years in the making, to drive up the carbon price by reducing allowances on the market.”