UK Emissions Trading Scheme: Shipping
The question
To ask the Secretary of State for Energy Security and Net Zero, what discussions he has had with the Secretary of State for Transport on co-ordination of the UK emissions trading scheme maritime expansion with the delivery of grid infrastructure needed for maritime decarbonisation.
Answered by Chris McDonald
The UK ETS Authority is made up of the UK Government and the devolved governments. Within the UK Government, my department, the Department for Transport and HM Treasury all work jointly to develop and implement the inclusion of maritime emissions in the UK ETS. This expansion will strengthen the scheme’s ability to deliver cost-effective emissions reductions, supporting the UK’s statutory carbon budgets and Net Zero target.
Investing in the grid is a key Government priority. The Government supports Ofgem in developing a price control that enable necessary investment in the electricity network for the clean energy and growth missions, including maritime transport electrification. The next distribution price control, ED3 covering 2028 to 2033, will be informed by Regional Energy Strategic Plans to support strategic network investments.
We understand the significance of getting sufficient grid capacity to electrify ports, for cruise and ferries to use shore power and policy options to accelerate connection dates for strategic demand customers, such as critical port sites. This is informed by the Department for Transport’s call for evidence on Net Zero Ports, published in March 2025, which posed questions on managing future energy demand at ports.
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