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Oct 24

SHIPPING SETS OUT £700M OF NET ZERO INVESTMENT PRIORITIES

The UK Chamber of Shipping has outlined a roadmap for the UK shipping industry to reach net zero by 2050, with a proposed £700m investment in the upcoming Budget to help make the UK a hub for clean shipping.

Key to this plan is cooperation between the industry and government to update the 2019 Clean Maritime Plan, to guide emission reduction efforts.

The Chamber has made several recommendations to the government, highlighting areas where public investment can unlock significant private funding:

  • Continuing research and development funding through UK SHORE.
  • Providing shore power so ships can plug in at ports instead of running their engines.
  • Protecting essential ferry services from costly emission trading scheme fees until they can fully decarbonise.
  • Ensuring the UK maritime sector has the necessary skills and workforce for the future.

With the right support, the UK could become a leading hub for future fuels, creating jobs not only in port cities but across the entire shipping supply chain. Currently, the UK supplies around two million tonnes of fuel to ships annually, compared to Rotterdam’s ten million tonnes. As demand for cleaner fuels grows, the UK has a chance to play a major role in the clean maritime fuel industry.

Download The Decarbonisation Timeline
Download The Decarbonisation Timeline

Read the UK Chamber of Shipping CEO Rhett Hatcher's Comment

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We all want to see shipping in the UK reach net zero as quickly as possible. Our roadmap sets out a pathway that we believe is achievable and maximises the return on government investment through unlocking industry finance and job creation.

“A long term plan is an important first step but this must be matched by delivering the infrastructure we need as is already happening in other locations. This includes delivering on the required infrastructure, including a shore power revolution, to help attract green shipping to the UK, benefitting not just maritime communities but the entire maritime supply chain.

"The UK’s domestic ferry network vital for 100,000s of people. Therefore, the Chamber is also calling for lifeline services to be exempt from the UK Emissions Trading Scheme, which shipping is due to enter in 2026, until infrastructure is deployed to allow these vessels to decarbonise.

“Domestic ferry operators are already taking action to reduce their emissions through measures such as improving fuel efficiency and hybrid vessels. But these operators are limited to what they can achieve by a lack of infrastructure meaning investment in assets such as electric or alternative fuel ferries is not viable.

“A time limited and reviewable exemption, in line with what has been put in place in the EU, would protect these services for those who depend on them while ensuring that these operators can continue to reduce emissions.

UK Chamber of Shipping CEO Rhett Hatcher

A breakdown of the Chamber’s spending asks

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Spending BidCostFurther detail
UK Shipping Office for Reducing Emissions (UK SHORE) funding £343m over five years

First announced in 2022 has played a crucial role in helping fund research and development of technology that will help the sector reduce its carbon emissions.

Previous funding has helped unlock over £66 million extra investment.

Shore Power£200mTo be allocated from the £1.8bn pledged to fund port infrastructure this would deliver will deliver 10 projects similar to the SEA CHANGE project in Portsmouth which will design, build and operate a ‘shore power’ system across the three busiest berths at Portsmouth International Port
UK Emission Trading Scheme lifeline ferry exemptionc.£10m a year through to 2030Ferries to the UK’s network of islands provide lifeline services but despite the willingness to invest are unable to fully decarbonise due to a lack of infrastructure. To safeguard these services a time limited and reviewable exemption should be introduced until the appropriate infrastructure is deployed.
Support for Maritime Training (SMarT) scheme£20m annually (£100m through to FY 2029-2030)

Recognising the strategic importance of maintaining an adequate supply of UK maritime expertise SMarT helps cover the significant costs of training a cadet, estimated to be around £75,000 per cadet, filtering down directly to students and trainees as a bursary.

This funding will complement an industry national awareness campaign launching later this year.