UK Emissions Trading Scheme: Shipping
The question
To ask the Secretary of State for Energy Security and Net Zero, what steps his Department is taking to align UK Emissions Trading Scheme (ETS) maritime rules with the EU ETS to help (a) prevent (i) carbon leakage and (ii) port avoidance and (b) maintain competitiveness.
Answered by Chris McDonald
The Government has assessed the impacts of expansion of the Emissions Trading Scheme to domestic maritime. That 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.
This is in part because many of the core maritime rules closely mirror those for the EU Emissions Trading System. This will reduce administrative burden for operators participating in both regimes, and it will also ensure no double charging between the two regimes.
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