Parliamentary Briefing | UK Emissions Trading Scheme

Our Key Asks of Parliament

• Delay the inclusion of maritime in the UK ETS until full evidence, impact assessments, and technical guidance are available.
• Ringfence maritime ETS revenues to fund decarbonisation infrastructure—mirroring the EU’s approach.
• Provide exemptions for lifeline ferry services and island communities to protect vital economic and social links.
• Avoid regulating international emissions until IMO negotiations on a global framework are concluded.

Why the Current Proposals are Problematic:

1. It Risks Undermining Decarbonisation Rather Than Supporting It
   The UK ETS would function as a carbon tax rather than an incentive to cut emissions, because vessels currently lack access to alternative fuels, shore power, and adequate grid capacity in UK ports. With only limited shoreside power available, taxation would divert capital away from green investment when it is most needed.
2. It Would Increase Costs for Passengers and Island Communities
   Over 2.4 million people rely on lifeline ferry services for essential travel and goods. Under the scheme, fuel costs could increase by 25–30%, and ticket prices could rise by up to 15%,
   No UK‑specific economic impact assessment has been carried out for these communities.
3. It Risks Fragmenting Global Climate Action
   The IMO is developing a global Net Zero Framework. Unilateral UK action could weaken international consensus and create a patchwork of conflicting regional systems, harming competitiveness and complicating compliance.
4. It Threatens UK Maritime Competitiveness
   The expansion could: Reduce UK port calls, Increase supply chain costs, Add complexity to GB–Northern Ireland routes,
   Create distortions with the EU ETS if definitions, enforcement mechanisms, or timelines diverge.

Industry already faces uncertainty due to limited government guidance—and with under six months before entry into force, operators cannot prepare effectively.

What’s Needed?

A stable, well‑defined regulatory framework that genuinely enables decarbonisation, protects essential connectivity, and maintains UK competitiveness. The industry urges government to delay implementation until a complete impact assessment is undertaken, guidance is published, and alignment with EU and IMO frameworks is secured.

You can find our full briefing documents here: