Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential merits of ringfencing UK ETS revenues generated from maritime emissions for investment in shore power, grid upgrades, vessel retrofits and alternative fuels.

The government is committed to maintaining an ambitious carbon pricing scheme to ensure that polluters continue to pay for their emissions. The UK Emissions Trading Scheme is our key lever to do so. This supports a cost-efficient transition toward net zero.

In July 2025, the UK Emissions Trading Scheme Authority confirmed an expansion to emissions from domestic maritime regime, commencing on 1 July 2026.

The UK does not hypothecate revenue from the UK ETS. All receipts from the UK ETS accrue to the consolidated fund, and go to funding government priorities, which includes decarbonisation support for the maritime sector.