Asked by: Lord Berkeley (Labour - Life peer)
Question to the Department for Transport:
To ask His Majesty's Government why they plan to introduce maritime obligations under the UK Emissions Trading Scheme (ETS) from July before pursuing linkage with the EU ETS; and what assessment they have made of the risks of implementing a standalone scheme before linkage with the EU scheme, in particular the risk of misalignment, double-charging at berth, impact on competitiveness and regulatory divergence for UK shipping operators.
Answered by Lord Hendy of Richmond Hill - Minister of State (Department for Transport)
As set out in the Maritime Decarbonisation Strategy, emissions pricing is an effective policy lever to reduce emissions. The Government set out its intention to include domestic maritime emissions in the UK Emissions Trading Scheme (ETS) in 2022 and confirmed expansion by 2026 in the Government response to the consultation in 2023. This was followed by a further consultation in November 2024 detailing the Government's proposed policy approach.
The Government have confirmed that we will be expanding the UK Emissions Trading Scheme (UK ETS) to domestic maritime from July 2026. 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.
The final policy design of the ETS has been based on the best available evidence and responses to these consultations, with the aims of incentivising investment in decarbonisation and avoiding competitive disadvantages for UK shipping operators.
There will be no double-charging of emissions when ETS is expanded to domestic maritime in July 2026, as the UK ETS will apply to voyages beginning and ending in the UK, and to emissions at berth within the UK. These emissions are not in scope of the EU ETS.
In May 2025, the UK and the European Union (EU) agreed to enter into negotiations on an agreement linking the UK ETS and the EU ETS. Linking ETS’s is about making life easier for operators and aims to minimise the administrative burdens and unlock greater access to a larger market, supporting economic growth and decarbonisation. Continuing negotiations will determine the details and extent of alignment.
Asked by: Lord Berkeley (Labour - Life peer)
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.
Answered by Lord Hendy of Richmond Hill - Minister of State (Department for Transport)
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.
Asked by: Lord Berkeley (Labour - Life peer)
Question to the Department for Science, Innovation & Technology:
To ask His Majesty's Government what steps they are taking to support the ocean sciences sector in protecting coastal areas; and what assessment they have made of the research opportunities such protection creates, particularly in relation to (1) climate change adaptation, (2) energy security, and (3) developing new and innovative technology.
Answered by Lord Vallance of Balham - Minister of State (Department for Energy Security and Net Zero)
UK Research and Innovation (UKRI) and Defra have funded a £14.8 million Resilient Coastal Communities and Seas Programme which will fund projects to enhance our knowledge of how to strengthen the resilience, health and wellbeing of UK coastal communities.
UKRI has also invested in the coastal economy, for example through the ECOflow and ECOWind programmes, supporting the rollout of clean energy in offshore wind, and an £11 million programme to build resilience to climate change in coastal communities and support their economic development.
More widely, Defra is working with the sector to help establish support it in the establishment of Marine Science UK (MSUK). MSUK acts as a collective voice for marine science across UK universities and research organisations, to champion the ocean and to communicate robust and coherent marine science evidence to government, industry and the wider community.
Asked by: Lord Berkeley (Labour - Life peer)
Question to the Department for Transport:
To ask His Majesty's Government what evidence they have that including emissions at berth in the UK Emissions Trading Scheme will deliver measurable abatement of emissions before shore power and alternative fuel infrastructure are available at scale in UK ports.
Answered by Lord Hendy of Richmond Hill - Minister of State (Department for Transport)
Including emissions at berth in the UK ETS targets a major source of maritime pollution. In 2019, vessels over 5,000 GT produced 1.9 MtCO₂e at berth in UK ports, around 58% of domestic maritime emissions, so bringing these emissions into scope drives operators to cut them now. This also aligns with the EU ETS approach, therefore providing operators a predictable and consistent framework.
Asked by: Lord Berkeley (Labour - Life peer)
Question to the Department for Transport:
To ask His Majesty's Government what representations they have received from shipping operators about concerns about the absence of sufficient shore-power infrastructure, limited port grid capacity and lack of alternative fuels at scale; and what plans they have to address those concerns before the commencement of the UK Emissions Trading Scheme for the maritime sector.
Answered by Lord Hendy of Richmond Hill - Minister of State (Department for Transport)
Following the launch of the Maritime Decarbonisation Strategy in March 2025, the Government has extensively engaged with shipping operators, ports, and the wider maritime sector. This includes engagement on shore power availability, grid capacity constraints and alternative fuels. We ran a call for evidence on Net Zero Ports that gathered evidence on current and future grid capacity at ports, as well as drivers of that future energy demand, and will continue working with industry to understand their needs.
This Government has worked with the National Energy System Operator and Ofgem to implement bold new reforms to the grid connections process. We are committed to ensuring ports future energy needs are taken into account as part of reforms and future planning of the network, and to working with industry to understand wider challenges such as energy costs.
Asked by: Lord Berkeley (Labour - Life peer)
Question to the Department for Science, Innovation & Technology:
To ask His Majesty's Government what steps they are taking to support ocean sciences and the growth of the blue economy.
Answered by Lord Vallance of Balham - Minister of State (Department for Energy Security and Net Zero)
The government has a strong track record of supporting marine science, including through the £10 million ‘Biological influence on future ocean storage of carbon’ (BIO-Carbon) programme, funded by UK Research and Innovation’s (UKRI) Natural Environment Research Council (NERC), which aims to better understand the role of ocean life in climate sequestration. NERC also supports and partners with the National Oceanography Centre and other marine delivery partners to underpin the UK’s marine science capabilities.
More widely, the Department for Environment, Food and Rural Affairs (DEFRA) supports the Centre for Environment, Fisheries and Aquaculture Science, supporting global efforts to tackle the challenges of climate change, biodiversity loss and food security. DEFRA also works to foster international ocean science co-operation on ocean sustainability issues, and is working closely with our fishing and seafood sectors to ensure they are profitable and sustainable. In addition, the investment provided by the £360 million Fishing and Coastal Growth Fund, which will support the next generation of fishermen and coastal communities over the next 12 years.
Asked by: Lord Berkeley (Labour - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what assessment they have made of the comparative availability of emissions-reducing technologies in (1) Scottish island ports, and (2) English island ports, including shore power, alternative fuels and port-side grid capacity; and how that assessment informed decisions to exempt only Scottish routes from the UK Emissions Trading Scheme.
Answered by Lord Whitehead - Minister of State (Department for Energy Security and Net Zero)
The Government is exempting ferries serving Scotland’s island and peninsulas due to unique challenges they face in accessing essential goods, healthcare, education and employment. This is in addition to the legal duties to consider island populations under the Islands (Scotland) Act 2018.
The Government will continue to work with industry to support the development of infrastructure and technologies needed to facilitate decarbonisation across the UK.
In September 2025, the Government announced £448m R&D funding for the UK Shipping Office for Reducing Emissions (UK SHORE) between 2026 and 2030. This represents the biggest government investment ever in our commercial maritime industry.
Asked by: Lord Berkeley (Labour - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what assessment they have made of the whether absence of a UK Emissions Trading Scheme exemption for English island lifeline ferry routes will result in higher fares and freight increases compared to protected Scottish routes; and whether they will publish that assessment.
Answered by Lord Whitehead - Minister of State (Department for Energy Security and Net Zero)
The Domestic Maritime Final Impact assessment was published on the 25th November 2025.
The Government has not undertaken route-level, ferry fare modelling. This is because, as set out in the Impact Assessment, operators’ commercial decisions, vessel utilisation and fare structures vary widely. The qualitative assessment indicates that any passthrough to consumers is likely to be modest.
The Government is exempting ferries serving Scotland’s island and peninsula communities because of the unique challenges they face in accessing essential goods, healthcare, education and employment. This is in addition to the legal duties to consider island populations under the Islands (Scotland) Act 2018.
Asked by: Lord Berkeley (Labour - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government whether they plan to introduce a temporary or time-limited exemption from the UK Emissions Trading Scheme for English island lifeline ferry services.
Answered by Lord Whitehead - Minister of State (Department for Energy Security and Net Zero)
There are no plans for temporary or time-limited exemptions from the UK ETS for English island ferry services.
Any potential impacts of the scheme on ferry services to English islands will be considered in a review of the effectiveness of the maritime regime in 2028.
Asked by: Lord Berkeley (Labour - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government what discussions they have had with shipping companies serving Northern Ireland about higher emissions coverage on routes between Northern Ireland and Great Britain under the UK Emissions Trading Scheme (ETS) than on routes between the Republic of Ireland and Great Britain under the EU ETS; and what further discussions they plan to have with affected operators before July.
Answered by Lord Whitehead - Minister of State (Department for Energy Security and Net Zero)
The Government is applying a 50% deduction in surrender obligation for voyages between Northern Ireland and Great Britain. This removes any disparity between the UK ETS and EU ETS, ensuring equivalent carbon pricing within the Irish Sea.
The Government consulted extensively with the maritime sector, to ensure all perspectives informed policy development.
During consultation, the Government provided bespoke engagement sessions including a roundtable for Northern Ireland stakeholders.
Government officials continue to engage and have subsequently held individual meetings with key stakeholders and industry bodies. Regulators are running a voluntary onboarding period which will help the sector engage with the ETS ahead of July.