Question to the Department for Energy Security & Net Zero:

To ask His Majesty's Government what assessment they have made of the compatibility with the United Kingdom Internal Market Act 2020 of the 50 per cent deduction from the UK Emissions Trading Scheme surrender obligation for Northern Ireland and the full exemption for Scottish islands.

The UK Emissions Trading Scheme applies a UK‑wide regulatory framework and is non‑discriminatory. Adjustments were designed to be consistent with the effective operation of the UK internal market.

The 50% surrender deduction for voyages between Great Britain and Northern Ireland ensures carbon pricing obligation equivalence on voyages across the Irish Sea, avoiding potential re-routing via Ireland and assisting in mitigating against any disproportionate impacts on businesses and consumers in Northern Ireland.

The exemption for ships operating Scottish ferry services reflects the unique challenges faced by those communities and the statutory duties on the Scottish Government to consider those communities.