Huw Irranca-Davies MS, Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs
The Greenhouse Gas Emissions Trading Scheme (Amendment) (Extension to Maritime Activities) Order 2026 (“the Order”) has today been laid in the Senedd.
This follows the publication on 27 November of the UK ETS Authority Response to the UK Emissions Trading Scheme Scope Expansion: Maritime consultation, which set out the decision to bring domestic maritime emissions into the scheme. The Order laid in the Senedd today sets out that the scheme will apply to vessels of 5000 Gross Tonnage (GT) and above with no de minimis threshold. It also applies a 50% reduction in the UK ETS surrender obligation on routes between Northern Ireland and Great Britain to avoid creating a disparity in carbon pricing obligations through different emissions coverage in routes between Northern Ireland and Great Britain, and Republic of Ireland and Great Britain, and provides an exemption for ferries serving the Scottish islands and peninsulas and for fishing vessels. Lastly, it enables the increase of the overall cap on UK ETS allowances in line with the projected increase in emissions from the introduction of the Maritime sector into the UK ETS.
The Order marks a vital next step in developing effective proposals for expansion of the UK ETS, increasing the level of emissions that will come under the scheme and helping to shape the future of the UK ETS in a way that supports Wales’ long-term net zero ambitions and broader decarbonisation strategy.
I have written to the Chairs of the Climate Change, Environment, and Infrastructure Committee and the Legislation, Justice, and Constitution Committee to inform them of these consultations.