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 5436301

Read the official Assembly record

Text

In making a winding-up speech on the debate, I will try to cover a couple of the points that have been raised. The Department has kept the Committee for Agriculture, Environment and Rural Affairs updated on the maritime ETS. On 27 November 2024, the Committee was informed of the UK ETS scope expansion consultation in respect of the maritime sector. On 18 July last year, the Committee was advised about the interim consultation response. On 25 November, it was advised of the main consultation response and publication of the UK ETS international maritime consultation. Officials have also engaged with the Committee this month and last month. There has been engagement on this. The issue has been discussed for a long period. It should come as no surprise that it has come to the Assembly today. As has been outlined previously, if the instrument is not passed by the Assembly, it falls everywhere. The Order in Council cannot be made without the agreement of all UK Administrations. We need to be conscious —.

I will happily give way, yes.

I will address the Scottish model in my comments When it comes to being a driver of decarbonisation, this policy is about cutting emissions and getting the incentives to drive investment in a cleaner economy. The scheme drives the market to reduce emissions where that is most cost-effective without prescribing specific technologies in any sector. For maritime operators, the scheme provides a clear price signal that supports investment in cleaner vessels, operational efficiency, emerging low-carbon fuels and modern wind propulsion. We have seen that, for example, in the Stena Line ships that have recently been deployed and the fact that shore power will be deployed in Heysham this year. The UK ETS will work alongside other policies that, together, will deliver decarbonisation of the sector. We see the impacts in terms of fuel prices and the need to decarbonise across society. The Government will continue to work with industry to support the development of the infrastructure and technologies that are needed to facilitate decarbonisation. The emissions trading scheme has a proven track record of supporting decarbonisation across high-emitting sectors. There has been a 55% reduction in emissions in the trading sector alone. With regard to the associated impacts associated, I will address a number of the points that were raised and how those impacts were considered. A full impact assessment that considered the impacts on the whole of the UK, including Northern Ireland, was published alongside the main authority response in November 2025. At my Department's request, the UK ETS Authority also undertook additional internal analysis during policy development to understand the potential impacts on Northern Ireland. The analysis shows that the impact is expected to be minor. The analysis suggests that the additional cost on Northern Ireland imports could be equivalent to 6p per ton of agricultural feedstocks, such as barley, and less than a penny per litre of fuel. That is expected to lead to an increase of less than 1% in the final prices of those case-study goods.

Yes.

I can give you certainty on two things: the reality of climate change and the impact that it is having in Northern Ireland and more broadly and the fact of our reliance on fossil fuels. We see that playing out today in how the conflict in the Middle East has increased the price of fuel and will push more people into fuel poverty. That is why we need to reduce our reliance on fossil fuels. The analysis that I have set out was based on a full cost pass-through worst-case scenario. Therefore, the actual cost impact could be much less. The outcome of the impact assessment is supported by the emerging analysis that has been completed on the EU scheme, which is already in place, and indicates that there will be minimal impact. Analysis from the EU shows that, in real terms, it could increase the price of a pair of shoes by a maximum of 80 cents, a banana by 0·8 cents and a TV by 10 cents. There is a clear understanding that this has already been introduced by the European Union, analysis has been undertaken on it and there are options for decarbonisation. It is important that we address the decarbonisation options. I am pleased to note the strides being made by industry in the decarbonisation of the maritime sector, with ships capable of operating on low-carbon fuels and making use of modern wind propulsion technologies now operating from Belfast. I fully support the plans being made by Belfast Harbour to introduce shore power. I am also pleased to note that £90 million has been made available for projects in Northern Ireland under the UK Shipping Office for Reducing Emissions scheme, including a project to demonstrate a fully electric crew transfer vessel in Belfast harbour and feasibility studies for a zero emissions shipping corridor between Northern Ireland and England, involving trials at Larne harbour.

In addition, Belfast Harbour Commissioners has recently concluded a public consultation on its draft master plan, with the final master plan due to be published in May. It aims to invest in shore power and to support partners to decarbonise. I am fully supportive of the commitments to sustainability made by Belfast Harbour Commissioners in the draft master plan. I met its representatives last week in regard to that and, in particular, to their proposals to develop shore power, and I am pleased to note that a tender process has already commenced. In the short term, operators can reduce their ETS costs through fuel efficiencies. The ETS also means that operators can choose the lowest-cost way for them to invest in decarbonisation. It does not mandate specific technologies. Northern Ireland operators can approach decarbonisation through efficiency upgrades and new technologies or by whatever means they deem appropriate for their own circumstances.

I will seek to address that. The Committee has been briefed on that. The situation will come into place, but there will be a phased implementation of ETS, and people need to be aware of that. I will finish my point about decarbonisation. I am pleased to note that Stena is now operating its groundbreaking Stena Futura vessel, which is the first roll-on roll-off ship equipped with multi-hybrid solutions, enabling it to operate on battery power, biofuel and methanol and to utilise battery propulsion and shore power when available. It currently operates on the Belfast to Heysham route. Stena has also launched the Stena Connecta, which uses a multi-hybrid propulsion system, enabling the use of battery power, biofuel and methanol. Uniquely, the Stena Futura has two rotor sails designed to enhance energy efficiency and deliver fuel savings. Stena Connecta also operates between Belfast and Heysham. As my colleague Mr Blair outlined, Stena Line currently charges environmental fees. I have looked those up, and we need to be conscious of that. On the issue of the Scottish ferries, we all know that the situation that applies to Northern Ireland is different. Northern Ireland is much larger than the Scottish islands. We secured a 50% exemption for Northern Ireland. The ferry for the Isle of Wight, which, as far as I am aware, is part of the United Kingdom, will have to pay 100%. Therefore, a dispensation has been given to Northern Ireland. We all know that it is currently 50% between GB and the Republic of Ireland. If that is not in place, there is a risk that gaming could occur, and I have set out the situation in that regard. With regard to previous debates on the issue in another place, the Rathlin Island ferry is not included in the scope. If there is a review in the time ahead, it will be important to have two things: the first is a sitting Assembly so that we can scrutinise it; the second is having Ministers in post so that we can make our case as the situation is reviewed in the time ahead. I am very clear that the Rathlin Island ferry is a lifeline ferry and should have an exemption, as has already been set out.

Yes, no problem.

Thank you, Mr Deputy Speaker. It is important that, when we are debating things, we use appropriate language in this place. It is important that you set that out. I have set out the situation with regard to the 50% exemption that was secured. It is much better than the situation with the Isle of Wight. A wider issue has to be considered, which is the situation regarding the linking between the UK and EU ETS. We need to be conscious of that.

I want to make a bit more progress on how the linkage will come into place. As is standard with emissions trading schemes, once the linkage is in place, there are arrangements for the surrender of allowances and how those are traded, and that will allow operators to adjust. If the Order is made at the March meeting of the Privy Council, which is set for 1 April 2026, it will come into force the day after, so on 2 April 2026. Operators will not be required to surrender any allowances for the 2026 period, nor will they be required to surrender any allowances for the 2027 period until April 2028, so there is sufficient lead-in time. Operators have been able to access guidance and have been able to register since late last year, with over 200 operators already having registered across the UK. I am happy to take your intervention, Mr Buckley.

1,594 words. Text as published by the Northern Ireland Assembly.

Assessment

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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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