Economists, thinktanks, and NGOs call on Rachel Reeves to charge shipping industry for emissions

The new government has a challenging financial situation to tackle as well as the climate crisis. The £22bn black hole identified by the Chancellor means that newly identified sources of revenue are vital.

Transport & Environment UK along with leading figures in economic policy including London School of Economics’s Dimitri Zenghelis, the New Economics Foundation’s Alex Chapman, and Grantham Institute’s Bob Ward has written to the Chancellor, Rachel Reeves, to include the UK’s share of shipping greenhouse gas emissions in the UK Emissions Trading Scheme (UK ETS).

Analysis from Transport & Environment has identified that this could raise £1bn per year which could then by used to kick start investment in the zero-carbon, hydrogen based fuels industry in the UK which will be essential to decarbonising shipping and aviation.

The letter calls for all of UK domestic shipping emissions and 50% of UK international shipping emissions to be included in the UK Emissions Trading Scheme.