UK Emissions Trading Scheme: Ferries
The question
To ask the Secretary of State for Energy Security and Net Zero, if he will make an assessment of the potential impact of the decision not to temporarily exempt the Isle of Wight from the maritime expansion of the Emissions Trading Scheme on the cost of Isle of Wight ferries.
Answered by Chris McDonald
The Government assessed the expansion of the United Kingdom Emissions Trading Scheme to domestic maritime on a scheme wide basis rather than for individual routes.
The Impact Assessment concluded that the policy is not expected to materially affect the competitiveness of ports or operators, and that applying the scheme consistently to domestic voyages and at berth emissions does not create a credible incentive for traffic diversion.
The Government recognises the importance of ferry services to the Isle of Wight. Any potential impacts of the scheme on these services will be considered in a review of the UK ETS Maritime regime in 2028.
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