Question to the Department for Transport:

To ask the Secretary of State for Transport, whether the Government plans to exempt ferry services to islands with fewer than 200,000 permanent residents and no fixed road or rail connection to the mainland from the UK Emissions Trading Scheme.

As set out in our 2025 Maritime Decarbonisation Strategy, emissions pricing and the expansion of the UK Emissions Trading Scheme (ETS) to UK domestic maritime 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.