Draft Greenhouse Gas Emissions Trading Scheme (Amendment) (Extension to Maritime Activities) Order 2026

Sammy Wilson Excerpts

Tuesday 3rd February 2026 General Committees

[Lockhart, Carla (Upper Bann) (DUP)]

[Wilson, Sammy (East Antrim) (DUP)]

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[Sammy Wilson (East Antrim) (DUP)]

The impact of the measure will have a disproportionate cost, especially in Northern Ireland, which relies on sea transport for the import of goods from GB, and for the export of goods from Northern Ireland to GB. Although the order is regarded as a domestic measure, it nevertheless affects an important part of our economic infrastructure, all to deal with an issue that results in about 1% of the UK’s total emissions. The order does not deal with a huge amount of carbon emissions, but it will have a disproportionate cost for Northern Ireland. That is on top of the costs that Northern Ireland already experiences as a result of the protocol and the Windsor framework, which has already added significantly to the cost of bringing goods in from GB and taking goods from Northern Ireland to GB.

The order’s impact on emissions will not be all that great anyway. It is not as if the measure will be an incentive for operators to change their behaviour, as they cannot: there are no alternatives other than sea transport. Therefore, whatever additional costs are imposed will have to be borne by consumers. I know the Minister talked about the reduction in emissions and working towards net zero and everything else. Given the nature of sea transport and its importance for transport between Northern Ireland and GB, as well as the lack of alternatives, this policy cannot lead to transport providers changing how they behave. They cannot go for alternative fuels; near-net zero fuels would simply price them out of the market because they are four to five times dearer than the fuels they use. They cannot opt for the electrification of ships; first of all, it is quite expensive, and secondly, the port infrastructure facilities are not even available.

It is also significant that there is no support package either. There was no talk anywhere in the Minister’s comments of the revenues raised being used to help the transition to different ways of transporting goods. The administrative costs that will be imposed through this order have already been mentioned by the shadow Minister, the hon. Member for West Aberdeenshire and Kincardine. The assessment gives us a range of between £103 million and £287 million. I think that shows that it is just a guess, and it indicates that the Government do not have a clue what the administrative costs will be. That is only the direct administrative costs for the operators, by the way. On top of that are the regulatory costs, which, again, the impact assessment says will be passed on to the operators anyhow. That is before any mitigation measures; those are just the administrative costs. What will the total cost of this be?

Those costs are bound to have an impact in many ways. The one thing Members can be sure of is that they will be passed on in higher freight rates, including in the freight rates between Northern Ireland and GB. Some may argue, “Well, that simply means that Northern Ireland producers will look elsewhere. They may look to the Irish Republic, for example, for supplies instead of bringing them from GB, if the routes are more costly”, but the fact remains that we are dependent on GB, our main supply route is from GB to Northern Ireland and most of our goods are going from Northern Ireland to GB, so there is not even an alternative to switching, even if that were desirable, and it is not desirable because firms choose the GB market because it is profitable for them and they choose GB suppliers because they are the best suppliers that they can use for their businesses.

The Government will probably say, “Well, yes, but we have made a 50% allowance for Northern Ireland”. I suppose the Minister will argue that that is a recognition that there is a special case for Northern Ireland. My argument is this: if the 50% allowance has been put in place, it is only because the Government recognise the disproportionate impact that the measure will have on Northern Ireland. According to the operators, that 50% allowance will go nowhere near to wiping out the costs.

It has not even been mentioned that this measure will have to be in place by July. There is not even any clear guidance available yet to the operators about what they will be required to do, and the EU is reviewing its emissions trading scheme simply because it recognises that there are technical details that need to be ironed out, yet the Government will load their scheme on to operators in three months’ time.

I have already mentioned the fact that this policy will first of all not reduce emissions because there are no alternatives, and secondly, the revenue that we raise from it will not be used to help operators transition from the methods that they use at present. There is nothing in this order about making money available for retrofitting, fuel experimentation and development, or putting power facilities on port sites to enable ships to use an alternative means of propulsion. This is simply a tax. It will not even achieve what the Government want—namely, to reduce emissions. It will have an impact on an economy—on a part of the United Kingdom —already burdened by actions that the previous Government took with the Windsor framework, which has been continued by this Government. This will be yet another cost on top of that. There is a case for saying that this measure should not be applied to domestic transport; we have heard about the impact on ferries to the islands. There is certainly a case for looking at the speed with which it is being implemented. I urge the Committee to consider those points.

I know that I will not have a vote on this measure. I suspect that even if I did have a vote and we tried to pack the place, it would not make any difference. I just ask that these serious issues are considered. This is not just a whinge and saying, “We don’t like this applying to Northern Ireland.” The measure will have serious impacts on our main trade routes with GB. The freight rates for those routes will not achieve the result that the Minister outlined. I ask that the issue be reconsidered with two solutions in mind. First, I am asking for a delay to allow further review and assessment of the impact. Secondly, given the likely impact on Northern Ireland and other isolated parts of the United Kingdom, I ask that the domestic application of the measure be dropped.

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[Chris McDonald]

Yes, I am very happy to extend that invitation for a further meeting with any Members of the House who wish to discuss the matter. Of course, there has been extensive consultation on this statutory instrument.

[Sammy Wilson]

Will the Minister give way?

[Chris McDonald]

I have given way multiple times, which I am sure the right hon. Gentleman will appreciate. I think it is time I brought the debate to a close.

These changes have the support of all four Governments of the United Kingdom, and consensus in advancing carbon pricing policy to include domestic maritime is key to delivering our decarbonisation goals and driving green investment across the United Kingdom. I commend the draft order to the Committee.

Question put.