Concerns Over Limited Scrutiny And Tight Timelines
The Draft Greenhouse Gas Emissions Trading Scheme (Amendment) (Extension to Maritime Activities) Order 2026 was approved by MPs on 11 February following limited Parliamentary scrutiny. Industry groups say the decision was taken despite widespread concerns across the sector.
A spokesperson for the UK Chamber of Shipping said: “The sector supports the UK’s climate goals, but cannot deliver meaningful emissions reduction without the necessary fuels, infrastructure, and clear guidance in place – and unreasonable timeframes to implement flawed policy. “Premature implementation risks higher costs for passengers and freight, with limited environmental gain. However, Government is pressing ahead, despite concerns from several quarters, leaving industry in an untenable position.”
Calls For Protections And Revenue Reinvestment
To ensure the scheme is workable, the industry is calling for several measures, including ringfencing maritime ETS revenues for shore power, grid upgrades, retrofits and clean fuels; protections for ferry‑dependent and island communities; alignment with EU ETS rules to avoid double charging; and a phased or “monitor only” period until operators and ports have the systems needed for compliance.
Industry representatives argue that the UK currently lacks viable alternative fuels and the port energy capacity required to support low‑carbon operations. Alternative fuels cost four to five times more than conventional options, and most ports do not have the shoreside electricity infrastructure needed for vessels to plug in while berthed.
Without reinvestment of ETS revenues, the sector warns the scheme could increase costs without delivering meaningful emissions reductions.
Impact On Island Communities And Lifeline Services
Concerns are particularly strong for island and lifeline ferry routes, where fare increases would disproportionately affect residents who rely on maritime transport for essential services, food supply and economic activity. While the EU ETS includes protections for Scottish islands, no equivalent safeguards have been confirmed for the UK scheme.
Compressed Preparation Period Raises Operational Risks
The regulations were published on 13 January and are due to take effect just six months later. Operators must finalise emissions monitoring plans, appoint verifiers, upgrade systems and assess financial impacts within this period, despite limited guidance from Government. Industry groups say the compressed timeline risks diverting investment away from decarbonisation projects already underway.
Industry Urges Government To Reconsider Approach
The Chamber is urging Government to publish full technical guidance, revise the implementation timeline, protect ferry‑reliant communities, recycle ETS revenues into maritime decarbonisation and ensure alignment with EU and international frameworks.
The sector says it remains ready to work with Ministers to develop an approach that supports genuine emissions reduction while safeguarding essential UK connectivity.
