UK Emissions Trading Scheme: Shipping

Department for Energy Security and Net Zero written question – answered at on 17 February 2026.

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Photo of Joe Robertson Joe Robertson Conservative, Isle of Wight East

To ask the Secretary of State for Energy Security and Net Zero, pursuant to the Answer of 3 February 2026 to Question 109699, what proportion of the estimated revenue from domestic maritime will result in direct emissions abatement within the maritime sector.

Photo of Chris McDonald Chris McDonald Parliamentary Under Secretary of State (Department for Energy Security and Net Zero), Parliamentary Under Secretary of State (Department for Business and Trade)

The Government’s Impact Assessment estimates that including domestic maritime in the UK ETS will increase allowance purchase revenue by around £1.9 billion over the 20-year appraisal period, averaging roughly £95 million a year.

Revenue from the UK ETS is not currently hypothecated, but is used to fund the government’s spending priorities, including spending and subsidies supporting the Net Zero transition.

The Government continues to support the maritime sector’s decarbonisation through existing funding, guidance and policies that support the uptake of cleaner technologies.

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