Question to the Department for Transport:
To ask the Secretary of State for Transport, if his Department will make an assessment of the potential merits of introducing a shipping fuel levy from 2025 on all (a) domestic and (b) international shipping from 2025, rising to a level consistent with the Government's carbon value by 2035.
On 3 July 2023 the UK ETS (Emission Trading Scheme) Authority confirmed its plans to expand the UK ETS to include emissions from domestic maritime, following on from our commitment to explore economic incentives in the Transport Decarbonisation Plan.
The UK is pressing for greater ambition during the review of the International Maritime Organization Initial Greenhouse Gas Strategy in July and continues to monitor developments of international and regional carbon pricing instruments covering shipping to consider how they may interact with our domestic policy.
The government keeps all taxes under review and any changes are announced by the Chancellor at fiscal events.