22
Jul 25

UK Chamber comments on Interim response on UK ETS

The UK Emissions Trading Scheme (UK ETS) Authority has published an interim response to the 2024 UK ETS Expansion to Maritime consultation.

Commenting on the publication, Peter Aylott, Director of Policy said; 

We welcome the confirmation that the extension of the UK Emissions Trading Scheme (UK ETS) to the maritime sector will not take effect until 1 July 2026. This delay is a necessary and pragmatic step, allowing operators time to adapt to the complexities of the new system. This interim response and the establishment of a government helpdesk are also positive developments, as extensive guidance will be essential, but further clarity will be needed.

The Government’s recognition of the maritime sector’s complexity, and its consideration of the future IMO Net-Zero framework, which will create an international carbon pricing solution —where the UK has a leading role to play —is encouraging.

However, the treatment of emissions at berth for international voyages, remains a concern. UK companies are investing heavily in new vessels and technologies, but UK electrification infrastructure is not keeping pace. The current approach might result in a “pay-to-pollute” model - further policy and regulatory framework to supply sufficient shore power, and vital infrastructure investment to enable real emissions reductions must also be prioritised.  

We also seek greater clarity on the treatment of offshore vessels within the scheme. This sector is critical to the UK’s ambition to become a clean energy superpower, and any misalignment with the EU could undermine the UK’s competitive edge.

Additionally, the Chamber continues to advocate for an exemption for lifeline ferry services across the UK, similar to provisions in the EU. These services are vital to 2.4 million people who rely on them for access to healthcare, education, and essential goods. Including them in the scheme would disproportionately impact these communities and may hinder long-term investment in emissions reduction on these routes.

We remain committed to working closely with the Government, and the relevant agencies as preparations for the scheme continue. We hope to gain clarity on outstanding issues, alongside constructive dialogue toward implementation and a pragmatic approach towards the EU Linkage.