Ferries: UK Emissions Trading Scheme
The question
To ask the Secretary of State for Transport, what assessment her Department has made of the potential impact of the UK ETS on lifeline ferry services outside Scotland, including routes serving the Isle of Wight, the Isles of Scilly and Northern Ireland.
Answered by Keir Mather
An Impact Assessment was published alongside the main Authority Response in November 2025, which includes analysis of regional and distributional impacts. To mitigate risks of competitive impacts with routes between Great Britain and Ireland, we intend to introduce a 50% surrender deduction on voyages between Great Britain and Northern Ireland. All ferries serving the Isles of Scilly and most serving the Isle of Wight will not be in scope of the ETS under the planned rules. Potential or realised impacts on UK islands will be considered within our 2028 review and future decisions will be based on the evidence available at that time.
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