UK Emissions Trading Scheme: Shipping
The question
To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the extent to which costs associated with the UK ETS maritime extension will be passed through to freight rates, supply chains, and consumers in the short term.
Answered by Chris McDonald
The Impact Assessment finds UK ETS compliance costs are modest relative to operators' overall costs. Route-specific case studies show very small effects on final prices, with increases well under 1% for typical freight goods.
The extent to which costs are passed through to supply chains and consumers will depend on operators' commercial decisions, contractual arrangements and market conditions. The Government has not undertaken route-level modelling, as these factors vary widely across the sector.
The Government will review the maritime element of the UK ETS in 2028.
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