Question to the Northern Ireland Office:

To ask the Secretary of State for Northern Ireland, whether he has had discussions with Cabinet colleagues on the differences in shipping tax between Northern Ireland, Scotland, and the Isle of Wight under the Emissions Trading Scheme.

Reforms to the UK Emissions Trading Scheme (ETS) are agreed jointly by Ministers in all four nations who have equal decision-making power. We have consulted extensively on this since March 2022. Obligations under the scheme apply uniformly to all nations in the UK.

A 50% deduction has been applied for voyages in either direction between Northern Ireland and Great Britain. This will ensure parity and prevent distortions with routes between the island of Ireland and Great Britain, which are included under the EU ETS.

A limited exemption applies for ferries serving Scotland's islands and peninsulas given legal duties under the Islands (Scotland) Act 2018.