Question to the Department for Transport:

To ask His Majesty's Government what consideration they have given in the introduction of maritime obligations under the UK Emissions Trading Scheme (ETS) to mirroring the EU's phased maritime ETS introduction and targeted exemptions for island connectivity routes to maintain competitiveness and prevent modal or port diversion effects.

The Maritime Decarbonisation Strategy (MDS), published in 2025, sets out how we will decarbonise UK maritime transport, including through the inclusion of domestic maritime sector in the UK Emissions Trading Scheme (ETS) from July this year.

The draft Statutory Instrument on the expansion of the ETS to maritime has now been laid and approved across the UK Parliaments, providing certainty ahead of the expansion in July. Further guidance is available from the Environment Agency.

Given the long lifespan of shipping vessels, action needs to be taken now to meet the goals of the MDS, helping the sector move towards a lower carbon future and contribute to UK net zero obligations.

In recognition of this change, the Government will give maritime operators until the end of the first two scheme years to familiarise themselves with the UK ETS and its digital systems before they must surrender allowances for those years.

Exemptions will 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.

The Government will monitor the impacts of the scheme and has committed to review the effectiveness of the scheme, including the exemptions, in 2028.