Question to the Department for Transport:

To ask the Secretary of State for Transport, what assessments her Department has made on the potential impact the UK Emissions Trading Scheme maritime expansion will have on transport and supply chain costs to and from the Isle of Wight.

As set out in the Maritime Decarbonisation Strategy, emissions pricing is a vital policy to decarbonise the sector and expansion of the UK Emissions Trading Scheme (ETS) to domestic maritime was assessed on a scheme wide basis.

The Impact Assessment concluded that the indirect consumer impacts of UK ETS expansion to domestic maritime, through cost pass-through, are likely to be modest. The extent of cost pass-through is a commercial decision for operators.

The Government will continue to engage with operators to understand the impacts and closely monitor this going forward. The UK ETS Maritime regime will be reviewed in 2028.