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

Debate contribution by Mr David Honeyford on 10 March 2026.

MLA

Mr David Honeyford

Party at the time

Alliance Party

Date

10 March 2026

Type

Debate contribution

Business

Executive Committee Business

Heading

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

Assembly identifier

Official Report component 5436257

Read the official Assembly record

Text

When people hear the phrase "emissions trading scheme", most will switch off. It sounds really technical and not related to everyday life, but such decisions are not abstract; they are about our economy and our trade. Ultimately, they are about opportunities and costs facing people and businesses here in Northern Ireland. Ultimately, the emissions trading scheme is a market tool. It places cost on pollution and allows businesses to innovate and compete to reduce emissions. Those who invest in cleaner technology benefit, and those who do not face increased costs. Over time, that creates incentives for innovation, efficiency and investment in new technologies. For us, however, the most important issue in the debate is not the climate policy, although that is vital. Rather, it is how such decisions affect our economy and our unique trading position. Northern Ireland sits in a distinctive place, between two major markets. We have access to the UK internal market and to the EU single market. That dual market access gives us a real economic advantage. At the minute, it is growing our economy at more than twice the rate of that of the rest of the UK. That creates opportunities and generates investment. It supports trade and grows better jobs and opportunities for the people who are listening to the debate. It also means, however, that we must think carefully about how regulatory systems interact across those two markets. When systems diverge, there is a risk of businesses facing unnecessary complexity or of trade routes starting to shift in ways that disadvantage us. That is why the provisions, which relate to maritime emissions, are really important. Maritime emissions have been within the scope of the EU emissions trading system since 2024. The system covers 100% of emissions generated from voyages between EU ports and 50% of emissions generated from voyages that start or end in the EU. Applying a 50% reduction to the UK ETS surrender obligations on voyages between Northern Ireland and GB, rather than requiring 100% surrender, will ensure fairness and parity with EU ETS carbon pricing across the Irish Sea and avoid the risk of competitive distortion locally. If that approach were not to be taken here, routes between Northern Ireland and GB could be faced with different carbon costs from routes between here and ports in the South. That would create an unintended distortion and encourage operators to reroute goods through Dublin port simply to avoid paying higher costs. That would not be good for Northern Ireland's ports, for its logistics sector or for the wider economy here. The approach that is taken in the draft Order avoids that risk. Applying the same 50% emissions coverage for Northern Ireland to GB routes will maintain parity across the Irish Sea and ensure that our ports are not placed at a competitive disadvantage. That is an important safeguard for a region where the economy depends so heavily on trade and connectivity. We live on an island and depend on shipping.

Jonny, you know that I will always let you in. I hope that that will be reciprocated. I will proceed with my contribution, but I will cover what you asked in a second. This is about economics, divergence and everything else. We dealt in Committee with the issue that you raised, and I will answer you as I go on. Carbon pricing is increasingly one of the rules of international trade. The European Union's carbon border adjustment mechanism will apply charges on imports from countries without comparable carbon pricing. That means that alignment between carbon-pricing systems can reduce barriers for exporters, thus making it easier for businesses to trade. For a trading region such as Northern Ireland, that really matters. Linking the EU ETS and the UK ETS would reduce friction for exporters, provide greater certainty for businesses and support stable trading relationships across these islands. The debate should be about not just compliance but opportunity. The maritime sector is undergoing a major technological transformation as it moves to using cleaner fuels and having more efficient vessels. Shipping companies around the world are investing in hybrid vessels, in methanol engines and in hydrogen fuel. That gives us major research and development opportunities to grow new technologies and skills locally. Ports are investing in shore power so that ships can plug into electricity while they are docked, rather than having to run their engines.

Robbie, honestly: if you mention the word "EU" and the word "Ireland" —

— three parties simply go against it.

We did not even need to read the thing —

— to see where you were going. If we were to wait for —.

You are making my decision for me, Mr Deputy Speaker.

Thank you for that. If we wait for everything to be in place before we change anything, nothing will ever change. You have to move. If pushing people brings that change, so be it. Belfast harbour has invested in shore power. We have seen investment in the harbour. It was recently announced that it will invest in a cruise and offshore wind terminal. Companies such as Stena are investing in hybrid vessels and new technologies to improve efficiencies. Those are exactly the kinds of innovations that will shape the future of maritime transport if we position ourselves well. In Northern Ireland, we have an engineering heritage. We have advanced manufacturing capabilities and a thriving industry. We have huge research and development capabilities and brilliant universities. We have strategic ports. We can play a major part in the transition.

Yes. I am happy to.

I thank the Minister for his intervention. That example is beside his constituency. Research and development is happening, as is investment. Jobs are reliant on that, and jobs are being created in those areas. There are so many opportunities for us in the maritime sector here. Some Members may suggest that such policies somehow undermine our economy; I take a completely different view. The real risk to our economy is in ignoring the direction of global markets, burying our heads in the sand and pretending that nothing is changing and that we can control everybody else. That would leave Northern Ireland unprepared for the changes that are already under way. The real risk is pretending that the global economy is not already changing. The countries and regions that succeed will be those that adapt, innovate and position themselves for the industries of the future. For Northern Ireland, that means making practical decisions to protect our competitiveness, support our ports and ensure that our economy continues to benefit from trade and investment. The Order helps to achieve that. It is not about choosing between the UK or the EU; it is about making sure that Northern Ireland's economy works in both markets and benefits from both. The Order protects Northern Ireland from unnecessary distortion across the Irish Sea, supports the competitiveness of our ports and positions our economy to take advantage of the transition that is taking place in maritime transport. Ultimately, the goal should always be the same: we bring forward practical policies that strengthen our economy, support jobs, create more jobs and build a more secure and prosperous future for everyone here and the people who call this place home.

1,209 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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