Debate contribution: Greenhouse Gas Emissions Trading Scheme (Amendment) (Extension to Maritime Activities) Order 2026

Debate contribution by Mr Andrew Muir on 10 March 2026.

MLA

Mr Andrew Muir

Party at the time

Alliance Party

Date

10 March 2026

Type

Debate contribution (made as a minister)

Business

Executive Committee Business

Heading

Greenhouse Gas Emissions Trading Scheme (Amendment) (Extension to Maritime Activities) Order 2026

Assembly identifier

Official Report component 5436212

Read the official Assembly record

Text

I beg to move

Thank you, Mr Deputy Speaker. I am grateful for the opportunity to bring the motion to the House. I do not propose to cover in detail the background and operation of the UK emissions trading scheme (ETS). However, I am happy to address any clarification questions that Members may have. Members and, in particular, members of the Committee for Agriculture, Environment and Rural Affairs have engaged positively with my Department on the emissions trading scheme. There is good understanding across the Chamber of the importance of the UK-wide decarbonisation scheme to our Northern Ireland and wider UK climate targets. The proposals contained in the Order have been subject to extensive local and UK-wide stakeholder engagement dating back to 2022, when they were first proposed, through a wide-ranging consultation on developing the UK ETS and, more recently, a consultation specifically on expanding the scope of the UK ETS to include emissions from domestic maritime voyages. The domestic maritime sector is a major source of greenhouse gas emissions. We are conscious of the need to address that. It is envisaged that including domestic maritime emissions within the scope of the UK ETS will help overcome a key barrier in the decarbonisation of the sector, which is that the current prices of maritime fuels do not reflect their environmental costs. Its inclusion in the scheme will strengthen the incentives to adopt low-carbon fuels and support the deployment of fuel-efficient technologies and practices. The policy is expected to deliver a UK-wide net emissions reduction of approximately 645,000 tons of carbon dioxide equivalent over the next 20 years. That reduction will have associated air quality benefits. Alongside my counterparts in England, Scotland and Wales, I agreed to the content and subsequent publication in July 2025 of an initial interim response to the consultation to allow maritime operators and regulators time to prepare for the requirements of the scheme. In November 2025, I agreed to the content and publication of the main response, which outlined the remaining provisions to be included in the draft Order. Executive colleagues and Committee for Agriculture, Environment and Rural Affairs colleagues have been kept fully informed throughout the process. The Greenhouse Gas Emissions Trading Scheme (Amendment) (Extension to Maritime Activities) Order 2026 was laid under the draft affirmative resolution procedure before both Houses of Parliament, the Scottish Parliament, the Welsh Senedd and the Northern Ireland Assembly on 13 January 2026 under the UK Climate Change Act 2008, which requires that the Order be laid in draft and debated in each legislature where it is to have effect. So far, the Order has been debated and approved in the Scottish Parliament, the Welsh Senedd and the House of Commons. If it is approved, the Order will extend the scope of the UK ETS to domestic maritime emissions. I will now outline the main provisions of the draft Order. It defines domestic journeys as voyages travelling from one UK port to another, as well as voyages that start and end at the same UK port. It also includes emissions within a voyage, including while at anchor and while moored. It will also include all import emissions comprised of emissions at berth in UK ports and emissions from movements in UK ports from ships travelling domestically, internationally or both. The threshold for inclusion in the scheme will be vessels of 5,000 gross tons and above. The same threshold is already used for existing monitoring, reporting and verification regimes in the UK and internationally. The majority of ships of that size are already equipped for collecting and reporting emissions data, which should facilitate a smoother transition for operators. Small local ferries, such as the Rathlin Island ferry and the Strangford lough ferry, will not fall into the scope, as they are well below that threshold, contrary to previous comment around this. Emissions of methane and nitrous oxide, as well as carbon dioxide, will be included within scope. The same regulatory regime will apply to the maritime sector as applies to the rest of the UK ETS, including the definition of scheme year and reporting and surrender deadlines. The draft Order sets out that the obligation to comply with UK ETS should be applied to the registered owner of the vessel, except where the responsibility has been delegated by a legally binding agreement. Significantly, I have secured, as an interim measure, a 50% partial exemption from UK ETS obligations for emissions from routes between Northern Ireland and GB. That will ensure parity with routes between the Republic of Ireland and GB, which are already subject to 50% emissions coverage under EU ETS, and it has been welcomed by stakeholders. It should also help to mitigate any potential cost impacts on consumers in Northern Ireland. The future inclusion of international maritime emissions in UK ETS, as referenced in the common understanding from the UK-EU summit on 19 May and on which a UK-wide consultation has recently concluded, will subsequently ensure parity in the Irish Sea and remove the need for the partial exemption. A full impact assessment has been undertaken alongside the draft Order, and further analysis, at my Department's request, was conducted by the authority looking specifically at the potential impacts on Northern Ireland across cruise ships, passengers and cargo. The analysis indicated that the impact on Northern Ireland consumers is expected to be minor. The findings from the analysis are supported by emerging data from the EU, which has included maritime emissions within scope since 2024. The inclusion of offshore vessels in the UK ETS will be delayed until January 2027, which aligns with the position for offshore vessels in the EU, helping to avoid the risk of gaming created by any policy divergence or misalignment. An exemption will be provided for ferries serving Scottish islands and peninsulas due to the legal duties imposed by the Islands (Scotland) Act 2018 on the Scottish Government to consider the vulnerability of small island populations and their reliance on the mainland for lifeline services such as emergency healthcare and education. An exemption is also provided for vessels in the fishing sector, which mirrors the EU position and will ensure that Northern Ireland fishing vessels will not be disadvantaged against those operating out of Irish ports. Government non-commercial maritime activity is fully exempted from UK ETS. Exemptions will be reviewed as part of the review in 2028, which will look at wider socio-economic impacts of the expansion and the ability of various sectors to decarbonise. The allowance cap will be increased in line with predicted emissions for the maritime sector for the remainder of phase 1 of UK ETS. That will ensure that an undue burden will not fall on existing scheme participants while maintaining a net zero trajectory. As announced at the UK-EU summit on 19 May 2025, the UK and the EU have agreed to work towards linking the UK ETS and EU ETS, the parameters of which are set out in the common understanding text agreed following the summit. That understanding stipulates that the maritime sector, among others, should be in the scope of a linking agreement. Linking should create the conditions to facilitate mutual exemptions from the EU and proposed UK carbon border adjustment mechanisms (CBAMs). I believe that the extension is necessary to incentivise decarbonisation of the maritime sector. The UK emissions trading scheme's inclusion of the maritime sector has been consulted on extensively and clearly signposted over a number of years. Its introduction is both well trailed and entirely expected by stakeholders and those impacted. Over 200 operators have already registered their details with regulators.

In addition to the immediate changes that maritime participants can make in relation to their operating practice, decarbonisation efforts will be supported by £448 million of funding that will be made available by the UK Government through the UK Shipping Office for Reducing Emissions (SHORE) project. I have secured agreement from the UK Government's Department for Transport to ensure that a Northern Ireland-specific event is held that will drive local engagement on the recently announced additional £271 million boost to shipping and coastal communities. I will continue to work with the UK Government to support the Northern Ireland maritime sector to secure good outcomes from that opportunity. I am pleased to note the strides that have been made by the industry in decarbonising the maritime sector, such as the introduction of multi-hybrid vessels and proposals to develop shore power. I am encouraged that such innovative advancements are indicative of the sector's commitment and capacity to continue to progress maritime decarbonisation. I am also working closely with the Finance Minister and our respective officials to explore potential fiscal opportunities for Northern Ireland as a result of our participation in emissions trading schemes. Accordingly, I commend the draft Order to the House.

1,466 words. Text as published by the Northern Ireland Assembly.

Assessment

Not flagged

Jev’s structured answers

Assessed 21 October 2026 at 15:11 UTC by jev-1.13.0 (requested as typesafe/jev) under rubric 2026.10-r9, methodology 1.9.

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