Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what information his Department has provided to members of the Northern Ireland Assembly on the relationship between the UK ETS maritime extension and potential CBAM impacts prior to the Assembly’s consideration of the relevant statutory instrument.

The Common Understanding published in May 2025 following the UK-EU Summit with the EU to work towards establishing a link between the UK ETS and the EU ETS. This sets out the parameters for a linking agreement, including that the link should apply in respect of domestic and international maritime.

It also states that linking will facilitate an exemption from the EU CBAM, removing a major barrier to trade and lowering costs for UK businesses. UK exports of goods in scope of EU CBAM are worth almost £7bn, and without a CBAM exemption, UK exporters could face large administrative and direct costs.