UK Emissions Trading Scheme: Shipping
The question
To ask the Chancellor of the Exchequer, whether revenues generated by the inclusion of domestic maritime within the UK Emissions Trading Scheme will be ringfenced for maritime decarbonisation.
Answered by Dan Tomlinson
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.
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