Source · Select Committees · Environmental Audit Committee
Seventh Report - Net zero and UK shipping
Environmental Audit Committee
HC 509
Published 29 May 2024
Recommendations
5
Accepted
We recommend that the Government continue to work at the IMO for adoption of effective...
Recommendation
We recommend that the Government continue to work at the IMO for adoption of effective regulatory measures to implement the 2023 Strategy. In tandem with this, Ministers must press for a 2028 Greenhouse Gas Strategy which consolidates the ambition of …
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Government Response Summary
The government accepts the recommendation, committing to continue working with IMO Member States to champion ambitious GHG reduction regulatory measures, aiming for agreement by MEPC 2025 and implementation by 2027. They will also seek to increase the stringency of the IMO’s 2023 GHG Strategy when revised in 2028.
6
Accepted
Prompt and effective implementation of IMO conventions will be essential to the delivery of meaningful...
Recommendation
Prompt and effective implementation of IMO conventions will be essential to the delivery of meaningful reductions in shipping emissions in line with Paris goals and national net zero pathways. We therefore urge the UK to work with those flag States …
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Government Response Summary
The government accepts the recommendation, committing to work with other flag states through appropriate IMO mechanisms to maximise the implementation of GHG emission reduction measures. This includes supporting capacity building and technical cooperation at the IMO, and utilising the IMO Member State Audit Scheme.
8
Accepted
Para 60
Assess merits of introducing voyage-based measure for UK's international shipping emissions contribution.
Recommendation
We recommend that the Government urgently assess the merits of introducing a voyage- based measure of the UK’s contribution to international shipping emissions, so as to provide a sounder basis for developing policy on reducing that contribution. It is in …
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Government Response Summary
The government accepts the recommendation, stating they have already developed a new maritime emissions model and will use it to review the methodology for UK national accounting. They also aim to legislate for the inclusion of international aviation and shipping emissions in the Sixth Carbon Budget at the earliest opportunity, subject to Parliamentary scheduling.
10
Accepted
Set stretching interim targets for UK domestic and international shipping emissions.
Recommendation
Net zero offers the UK an unrivalled opportunity to secure benefits for the UK maritime sector and the UK’s research and manufacturing base. It is now high time for Ministers to advance to the next stage of policy development by …
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Government Response Summary
The government accepts the recommendation, committing to publish a maritime decarbonisation strategy and actively considering options for stretching interim targets for UK domestic and international shipping emissions in 2030 and 2040.
13
Accepted in Part
Para 135
Review and commit to further matching funding for UK shipping decarbonisation research until 2030.
Recommendation
The Government must send clear and unambiguous signals to the UK maritime sector that it is committed to supporting its transition to net zero. We recommend that Ministers urgently review the funding perspectives for decarbonisation of UK shipping and, no …
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Government Response Summary
The government partially accepts the recommendation, recognizing the need for R&D funding and long-term certainty but states it will consider how to take this forward as part of the next multi-year spending review, rather than committing by the next fiscal event.
14
Accepted
Para 136
Government's failure to commit to zero-emission marine fuel manufacturing facilities is disappointing.
Recommendation
As with low-carbon aviation fuel, the development of manufacturing capacity for zero-emission marine fuels is vital for the security of the UK’s maritime trade and for the establishment of green shipping corridors. It is disappointing that the Government says it …
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Government Response Summary
The government notes the recommendation, explains the complexity of manufacturing low-carbon marine fuels, and outlines existing support through hydrogen projects, maritime clusters, and the £206m UK SHORE programme for innovation in zero-emission fuels.
16
Acknowledged
Para 138
Develop strategy and delivery plan for zero-emission marine fuel manufacturing facilities in UK clusters.
Recommendation
As part of the updated Clean Maritime Plan the Government must develop a strategy to support the development in UK maritime clusters of facilities for the manufacture of zero-emission marine fuels. This strategy must be supported by a delivery plan …
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Government Response Summary
The government notes the recommendation, stating that the manufacture of zero-emission marine fuels is a complex issue with unfully understood competitiveness. They highlight existing support for low-carbon hydrogen projects and maritime clusters, and innovation funding through the £206m UK SHORE programme.
17
Deferred
Consult on introducing a revenue support mechanism to incentivise UK zero-emission marine fuel production.
Recommendation
We recommend that Ministers consult on the introduction of a revenue support mechanism to incentivise the commercial production of zero-emission marine fuels in the UK. (Paragraph 139) Technical measures to decarbonise shipping: efficiency improvements
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Government Response Summary
The government notes the recommendation, recognising the need for low-carbon fuels but stating more evidence is needed on how to incentivise UK production. They are committed to gathering further evidence on the potential production of these fuels.
18
Accepted in Part
Para 164
Clean Maritime Plan lacks clear, measurable objectives for shipping operational efficiencies.
Recommendation
The current Clean Maritime Plan sets no clear or measurable objectives for the UK’s contribution to operational efficiencies from domestic and international shipping.
Government Response Summary
The government partially accepts the recommendation, recognizing efficiency's role and committing to support the IMO's review of energy efficiency measures, while also exploring the case for complementary domestic measures.
19
Accepted in Part
Para 165
Set stretching interim targets for UK domestic shipping emission savings within the refreshed Clean Maritime Plan.
Recommendation
The refreshed Clean Maritime Plan must set stretching interim targets for the emissions savings to be achieved from operational efficiencies in UK domestic shipping to 2050, together with a detailed plan for how these savings are to be achieved through …
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Government Response Summary
The government partially accepts the recommendation, acknowledging the role of efficiency in decarbonisation and stating its intent to support the IMO's review of energy efficiency measures. However, it does not commit to setting stretching interim targets or a detailed plan for UK domestic shipping, instead focusing on exploring the case for domestic measures.
21
Acknowledged
Para 167
Commission workstream to optimise international shipping efficiency through UK Hydrographic Office expertise.
Recommendation
We recommend that, as part of the refreshed Clean Maritime Plan, Ministers commission a workstream to examine how the efficiency of international shipping operations can be further optimised by the appropriate development of the expertise in the UK Hydrographic Office.
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Government Response Summary
The government notes the recommendation, stating it will engage with UK stakeholders, including the UKHO and other expertise centers, as part of its work on energy efficiency, rather than commissioning a specific new workstream.
23
Deferred
Para 169
Consult on regulating carbon intensity of vessels entering UK ports for 'A' to 'C' ratings.
Recommendation
We recommend that Ministers consult on the emissions benefits to be achieved through regulating the maximum carbon intensity of vessels allowed to enter UK ports, with a view to permitting only those vessels rated ‘A’ to ‘C’ for carbon intensity …
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Government Response Summary
The government notes the recommendation but defers action, stating it would be premature to consult on regulating carbon intensity of vessels entering UK ports given the ongoing IMO review process. It will continue to support the IMO review and explore further domestic measures.
25
Accepted in Part
Para 179
Launch net zero ports consultation immediately to plan infrastructure, funding, and electrification requirements.
Recommendation
We recommend that Ministers launch their planned consultation on net zero ports without further delay, so as to gather signals from the ports industry and the wider maritime sector at the earliest opportunity as to what infrastructure is likely to …
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Government Response Summary
The government accepts the recommendation and is considering options for a call for evidence alongside its domestic maritime decarbonisation plan, aiming to collate evidence on port clean energy infrastructure and enable port decarbonisation.
28
Accepted in Part
Require Ministers to set out current state of green corridor feasibility studies and discussions
Recommendation
In its response to this report we expect Ministers to set out the current state of each of the green corridor feasibility studies UK SHORE is engaged in, and the state of discussions with the USA, Canada, Singapore and other …
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Government Response Summary
The government partially accepts the recommendation, providing details on £1.1m funding for three Green Corridor feasibility studies and £80.4m for zero-emission vessel technology. They list bilateral partnerships with several countries, acknowledging current engagement and stating progress on individual corridors will be provided at appropriate points.
30
Accepted
Press for global market-based measure for international shipping at IMO level by 2028
Recommendation
The Government must press for a global market-based measure for international shipping to be adopted and implemented at IMO level by the end of the current GHG Strategy period in 2028. To avoid ‘double counting’, any IMO measure ought to …
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Government Response Summary
The government accepts the recommendation, committing to champion the adoption of an international shipping levy at the IMO's 83rd MEPC in April 2025, to take effect in 2027, and will seek to avoid double counting with other GHG pricing schemes.
32
Accepted in Part
Para 205
Ensure revised Clean Maritime Plan contains ambitious targets, zero-emission fuel strategy, and shore power measures
Recommendation
The revised Plan will represent a significant policy statement from Ministers in response to the IMO’s revised GHG strategy. It must be cast so as to outstrip the ambition of the IMO’s current strategy, while setting out stretching yet deliverable …
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Government Response Summary
The government accepts this recommendation, stating it is considering options for setting interim and 2050 GHG emission goals for UK domestic maritime in its upcoming strategy and will set out the pathway to meet these. It also commits to continuing support for the IMO's GHG Strategy and developing a new maritime emissions model.
33
Accepted in Part
Require Ministers to update Parliament on Clean Maritime Plan progress and commit to publication date
Recommendation
The delay in publication of the revised Clean Maritime Plan is highly undesirable, particularly in the light of recent intensification of international dialogues on maritime decarbonisation. Stakeholders understandably demand policy certainty before making substantial investment decisions on decarbonisation strategies. Ministers …
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Government Response Summary
The government accepts this recommendation to publish the revised Clean Maritime Plan, stating it will do so 'shortly' and outlining its key contents including pathways, policy interventions, and timelines. However, it does not commit to the specific three-month deadline for publication or explicitly state when it will update Parliament before then.
Conclusions (16)
1
Conclusion
Acknowledged
Para 44
We welcome the International Maritime Organization’s adoption in 2023 of a revised Greenhouse Gas Strategy and the clearer signals it provides to IMO States and the shipping industry on the pathway to achieving net zero ambitions from shipping by 2050.
Government Response Summary
The government welcomes the IMO's 2023 Revised GHG Strategy and commits to working towards the highest possible ambition as part of the next review in 2028.
2
Conclusion
Accepted
Para 45
The UK’s influence over and contribution to international shipping activity is considerable. We commend the UK Government on its contribution to date in securing a global strategy which is far more ambitious than that initially adopted by the IMO in 2018.
Government Response Summary
The government accepts the conclusion and is actively working with IMO Member States to champion ambitious GHG reduction regulatory measures for international shipping. They will continue to build international consensus for agreements in 2025, implementation in 2027, and to increase the stringency of the IMO's 2023 GHG Strategy in 2028.
3
Conclusion
Accepted
Para 46
We nevertheless observe that the strategy adopted by the IMO does not currently align with a pathway consistent with the Paris Agreement target of limiting global warming to 1.5°C, and that its ambition is limited to achieving net zero emissions “by or around” 2050.
Government Response Summary
The government accepts the observation, committing to work with IMO member states to agree ambitious GHG reduction measures by MEPC 2025 for implementation in 2027, and to increase the stringency of the IMO’s 2023 GHG Strategy when revised in 2028.
4
Conclusion
Accepted
Para 47
The period to 2028 and the expected adoption of a further GHG Strategy will be a crucial one for international shipping emissions, as agreement is reached on regulatory measures to implement the 2023 Strategy and as IMO States seek consensus on further decarbonisation plans. The outcome of discussions at the …
Government Response Summary
The government accepts the conclusion and is actively working with IMO Member States to agree and implement ambitious GHG reduction measures by MEPC 2025/2027. They will also seek to increase the stringency of the IMO's 2023 GHG Strategy in 2028.
7
Conclusion
Accepted
Para 59
The current method for allocating international shipping emissions between states appears unsustainable as a basis for making UK policy on international shipping emissions and determining the maximum emissions permissible from the UK’s international shipping in the Sixth Carbon Budget. The International Maritime 58 Net zero and UK shipping Organization has …
Government Response Summary
The government accepts the conclusion and has developed a new maritime emissions model based on global vessel data to review and update the methodology for calculating UK shipping emissions. They aim to legislate for the inclusion of international shipping emissions in the Sixth Carbon Budget.
9
Conclusion
Para 94
We welcome the Government’s initiative to establish UK SHORE as a dedicated unit to promote research into green maritime technology and the reduction of emissions from UK shipping. We are nevertheless concerned to note that no specific objectives or targets have been set for the unit, and are alarmed to …
11
Conclusion
Deferred
Para 133
The provision of up to £206 million of matching funding for research into low- and zero-emission shipping is to be applauded, and no doubt represents a step change in Government investment in the field. It is, however, dwarfed by the sums of public money committed to research and development into …
Government Response Summary
The government partially accepts, recognizing the need for further R&D. It states it will consider how to take forward this recommendation as part of the next multi-year spending review, deferring specific commitments.
12
Conclusion
Deferred
The Government’s current refusal to guarantee funding for research and development into maritime decarbonisation beyond March 2025 is regrettable. We note that the Aviation Technology Institute has received a guarantee of funding to 2030, no doubt reflecting the importance to the economy, and to decarbonisation targets, of rapid progress in …
Government Response Summary
The government partially accepts, acknowledging the need for further R&D and calls for long-term certainty. It states it will consider how to progress this recommendation as part of the next multi-year spending review.
15
Conclusion
Para 137
We note with interest the recent modelling undertaken by UMAS and Arup, examining how a domestic clean ammonia facility could significantly benefit the take up of zero-emission maritime fuels for ferries operating across the North Sea from Newcastle, the Tees Estuary and Immingham. This holistic assessment of the business case …
20
Conclusion
Acknowledged
The UK’s influence in international shipping is considerable and extends beyond its prominent position at the IMO. The basis of the majority of international shipping contracts is English law. The UK Hydrographic Office provides unrivalled resources to support vessels in optimising their voyages so as to maximise energy efficiency. This …
Government Response Summary
The government notes the observation, recognising the UK's leading role in shipping law and hydrography. It states it is considering how to reflect and build on these strengths while developing a maritime decarbonisation strategy.
22
Conclusion
Deferred
Para 168
IMO standards for existing ship efficiency provide progressively more stringent measures to require the existing fleet to reduce its emissions. Current measures have been criticised for a lack of ambition. While the amendments to the MARPOL Convention currently being contemplated at the IMO may further ratchet up efficiency requirements, there …
Government Response Summary
The government notes the conclusion, recognising the need for improvements to IMO short-term measures and committing to push for changes through the ongoing IMO review process. However, it deems it premature to consult on a more stringent UK approach while the IMO review is underway.
24
Conclusion
Accepted
Para 178
It is regrettable that the Government has changed course on its policy on the provision of shore power to UK ports. In a period where grid connections are currently at a premium and demand for electricity supply is increasing, the delay in determining policy on how to provide power to …
Government Response Summary
The government accepts the conclusion and is considering options for a call for evidence, alongside its domestic maritime decarbonisation plan, to understand existing clean energy infrastructure at ports and enable their decarbonisation, including timely grid connection upgrades.
26
Conclusion
Accepted
Para 186
The initial Clydebank Declaration, and the consolidation and development of initiatives for green shipping corridors since COP26, represent considerable progress in collaboration between governments, and between the Government and industry, in the practical measures required to make decarbonised shipping a reality. Ministers are to be commended for the initiative in …
Government Response Summary
The government partially accepts the commendation, detailing ongoing funding through the UK SHORE programme (£1.1m for feasibility studies, £80.4m for ZEVI) and bilateral partnerships to support the establishment of Green Corridors, demonstrating continued proactive work in this area.
27
Conclusion
Accepted
Para 187
The UK, as a leading proponent of this multilateral approach, is demonstrating how green corridors can be implemented on domestic, regional and intercontinental routes. We welcome the recent announcement of collaborations to establish green corridors between the UK, the Netherlands, Norway, Denmark, and Ireland, and we look forward to further …
Government Response Summary
The government partially accepts the welcome, detailing ongoing funding through the UK SHORE programme (including £1.1m for feasibility studies and £80.4m for ZEVI) and established bilateral partnerships to support the development of Green Corridors, with further project winners to be announced soon.
29
Conclusion
Para 199
We welcome the inclusion of domestic shipping in the UK Emissions Trading Scheme from 2026. We also note the initial decision of the UK ETS Authority not to extend the UK ETS to cover international shipping. The Authority’s position is subject to further consultation.
31
Conclusion
Accepted
Para 204
The Clean Maritime Plan—the element of the Government’s Maritime 2050 strategy focused on decarbonising shipping—was issued in its initial form in 2019. At the time of publication, it was envisaged that the Plan would be reviewed in 2022. The revision was later deferred to 2023: even on that timetable it …
Government Response Summary
The government accepts the conclusion and commits to publishing the delayed maritime decarbonisation strategy shortly. It will provide a pathway to net zero with interim goals, policy interventions, a framework for support, and a timeline for delivery.