Question to the Department for Transport:

To ask the Secretary of State for Transport, whether she has considered the potential merits of introducing an exemption from the UK Emissions Trading Scheme for island ferry services comparable to that available under the EU scheme.

As set out in our Maritime Decarbonisation Strategy, emissions pricing and the expansion of the UK Emissions Trading Scheme (ETS) is a vital policy to decarbonise the sector. A uniform carbon price applied consistently ensures that emissions reductions are delivered at the lowest overall economic cost and market distortions are minimised.

Exemptions apply to ferry services to Scotland’s islands and certain peninsular communities. These are based on the unique and pressing challenges faced by these communities due to exceptional reliance on ferries for essential goods, healthcare, education, and employment, as well as additional legal duties under the Islands (Scotland) Act 2018. We have assessed that these criteria are not met for other UK islands.