Question to the Department for Energy Security & Net Zero:

To ask His Majesty's Government whether they plan to ringfence a proportion of UK Emissions Trading Scheme (ETS) revenues from the maritime sector to fund alternative fuel and port grid upgrades in line with the EU ETS extension to maritime.

The Government’s Impact Assessment estimates that including domestic maritime in the UK ETS will increase allowance purchase revenue by around £1.9 billion over the 20-year appraisal period, averaging roughly £95 million a year.

Revenue from the UK ETS is not currently hypothecated, but is used to fund the government’s spending priorities, including spending and subsidies supporting the Net Zero transition.

The Government continues to support the maritime sector’s decarbonisation through existing funding, guidance and policies that support the uptake of cleaner technologies.