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Written question asked by Lord Weir of Ballyholme (Democratic Unionist Party) on Monday, 16 March 2026, in the House of Lords. It was due for an answer on Monday, 30 March 2026. It was answered by Lord Whitehead (Labour) on Monday, 30 March 2026 on behalf of the Department for Energy Security and Net Zero.

UK Emissions Trading Scheme: Exemptions

Question

To ask His Majesty's Government what assessment they have made of the compatibility with the United Kingdom Internal Market Act 2020 of the 50 per cent deduction from the UK Emissions Trading Scheme surrender obligation for Northern Ireland and the full exemption for Scottish islands.

Answer

The UK Emissions Trading Scheme applies a UK‑wide regulatory framework and is non‑discriminatory. Adjustments were designed to be consistent with the effective operation of the UK internal market.

The 50% surrender deduction for voyages between Great Britain and Northern Ireland ensures carbon pricing obligation equivalence on voyages across the Irish Sea, avoiding potential re-routing via Ireland and assisting in mitigating against any disproportionate impacts on businesses and consumers in Northern Ireland.

The exemption for ships operating Scottish ferry services reflects the unique challenges faced by those communities and the statutory duties on the Scottish Government to consider those communities.

Secondary information

Type
Written question
Reference
HL15621
Session
2024-26
Subjects
Exemptions Northern Ireland Scottish islands UK emissions trading scheme
Legislation
United Kingdom Internal Market Act 2020
Link
View this Written question on www.parliament.uk