Both Isle of Wight MPs have this week raised the growing local concerns about the impact of the Emissions Trading Scheme (ETS) on Isle of Wight ferry services.
As reported by OnTheWight, ferry operators say the new rules which come into effect from summer 2026 will cost them up to £1 million a year.
The UK ETS requires entities that exceed a certain emissions threshold to purchase allowances for each tonne of CO2 they emit. While operators are moving to decarbonise, they say that without adequate electrical grid capacity upgrades, there is often no viable alternative, making UK ETS expansion detrimental to the ferry operators’ decarbonisation efforts.
Prime Minister’s Questions
On Wednesday, Richard Quigley, Labour MP for Isle of Wight West used his question at Prime Minister’s Questions to raise growing local concerns about the impact of ETS on Isle of Wight ferry services.
He warned that, without an exemption, ferry fares could rise further – placing increased pressure on Island residents, businesses, and visitors.
Addressing the Prime Minister directly, Richard said,
“With the Emissions Trading Scheme (which ironically only applies to a hybrid vessel) now set to increase fares further – despite exemptions granted for Scottish services and the Island lacking the grid capacity to fully decarbonise – I am deeply concerned about the impact on our Island community.
“Will the Prime Minister urgently ask DESNZ Ministers to review this issue, to ensure that the Isle of Wight does not face enforced increases to fares?”
Meeting with Minister promised
In response, the Prime Minister Sir Keir Starmer said,
“I know how important affordable ferries are for his constituent’s everyday lives. The ETS scheme will make journeys cleaner and we’re working with ferry companies on the grid connections in ports to enable greener vessels I’ll make sure he gets a meeting with the relevant Minister.”
Northern Ireland debate
Joe Robertson, Conservative MP for Isle of Wight East, raised his question during the debate on Economic Impact of Government Policies – Northern Ireland, on Wednesday. He asked,
“The Government are giving a 50% reduction to the emissions trading scheme levy on ferries crossing between Northern Ireland and Great Britain in an apparent effort not to negatively impact the economy there.
“Scottish islands are getting a 100% reduction, yet the Isle of Wight is getting no reduction. What economic assessment has been done to arrive at those figures, or are they simply plucked out of thin air?”
Hilary Benn, The Secretary of State for Northern Ireland, replied,
“The figures are based on the assessment that there are particular requirements for the Scottish islands in terms of services, access to essential care and so on. That is why that exemption has been applied for Scotland.
“The impact of this measure on trade between GB and Northern Ireland will be very small in light of the overall costs of moving goods and transportation.”
