UK Emissions Trading Scheme: Shipping
The question
To ask the Secretary of State for Energy Security and Net Zero, when Ministers in his Department first assessed the relevance of the EU Carbon Border Adjustment Mechanism to the inclusion of maritime emissions within the UK Emissions Trading Scheme.
Answered by Michael Shanks
Neither the UK Carbon Border Adjustment Mechanism (CBAM) nor its EU equivalent applies to maritime emissions, and this instrument does not introduce any CBAM obligations for maritime operators.
The Common Understanding, published in May 2025 sets out the parameters for a linking agreement between the UK and EU emissions trading schemes, including that the link should apply in respect of domestic and international maritime.
Linking will facilitate an exemption from the EU CBAM, removing a major barrier to trade and lowering costs for UK businesses.
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