Shipping: UK Emissions Trading Scheme
The question
To ask the Secretary of State for Transport, pursuant to the Answer of 10 February 2026 to Question 110104 on the Emissions Trading Scheme, whether she has made an assessment of the potential merits of phasing in the expansion of the Emissions Trading Scheme to maritime, with reference to the approach of the EU equivalent.
Answered by Keir Mather
The Maritime Decarbonisation Strategy (MDS), published in 2025, sets out how we will decarbonise UK maritime transport, including through the inclusion of domestic maritime sector in the UK Emissions Trading Scheme (ETS) from July this year. Given the long lifespan of shipping vessels, action needs to be taken now to meet the goals of the MDS, helping the sector move towards a lower carbon future and contribute to UK net zero obligations.
To support maritime operators during implementation of the Scheme the Government will allow operators to wait and surrender allowances for the first two scheme years, providing further opportunity to familiarise themselves with UK ETS and the digital systems. Additionally, whilst reporting has been paused, operators will already be familiar with Monitoring, Reporting and Verification (MRV), under both the existing UK MRV, and the EU MRV regimes.
The Government will monitor the impacts of the scheme and has committed to review the effectiveness of the scheme, including the threshold and the exemptions, in 2028.
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