Question to the Department for Transport:

To ask the Secretary of State for Transport, what steps her Department is taking to ensure that projects supported by the Zero Emission Vessel Infrastructure fund in (a) Aberdeen (b) Portsmouth and (c) the UK are able to proceed with vessel plug-in demonstrations; and whether she has made an assessment of the potential impact of (i) uncertainty on the UK Emission Trading Scheme's applicability to domestic maritime, (ii) the VAT rating of shore power and (iii) the level of ports' (A) transmission and (B) standing charges on the viability of such projects.

The Zero Emission Vessel Infrastructure (ZEVI) fund provided £80 million of funding to ten projects, including over £25 million for cold ironing projects in Portsmouth, Aberdeen and Falmouth. Our UK SHORE programme delivery partner Innovate UK, monitors, scrutinises and works with projects to ensure they are on track for delivery and to assist with overcoming barriers which may impact upon delivery.

While we have not specifically assessed the impact of the points raised on the viability of ZEVI projects, the wider policy environment will of course enable the long-term viability of these projects.

The recently published Maritime Decarbonisation Strategy sets out our intended policy package for the UK domestic maritime sector, including expanding the UK Emissions Trading Scheme (ETS) to domestic maritime from 2026. This will be a key policy in enabling the conditions for zero and near-zero emission vessels to be commercially viable, by applying a price to emissions, and incentivising the uptake of emissions reduction technologies.

In the coming months we will publish our response to the consultation on the technical details of including domestic maritime in the ETS, which will provide more certainty on the applicability of the scheme.

Further to this, we recently concluded a call for evidence on Net Zero Ports. It focused on port decarbonisation and zero emissions at berth, including questions on the barriers and opportunities of reducing emissions at berth and standing and transmission charges at ports. Our response to this call for evidence will follow in due course. We will continue to engage with Ofgem and other departments regarding the provision and use of electricity by ports and their users.