The UK is committed to reaching net zero by 2050.

To achieve this goal, the UK Emissions Trading Scheme Authority (UK Government, Scottish Government, Welsh Government and the Department of Agriculture, Environment and Rural Affairs for Northern Ireland) have committed to further develop the UK Emissions Trading Scheme (UK ETS) to incorporate more sectors of the UK economy.

Frontier was commissioned by the Department for Transport (DfT) and the Department for Business, Energy and Industrial Strategy (BEIS) in 2022 to examine the impacts of expanding the UK ETS to the domestic maritime sector. The UK ETS covers domestic flights, flights between the UK and Gibraltar and flights departing the UK to the European Economic area but does not currently cover emissions from non-electrified road or rail, or emissions from domestic or international shipping.

This report qualitatively assesses the risks of carbon leakage, internal carbon displacement and competitive disadvantage, with a focus on three particular routes between Great Britain and Northern Ireland.

Please click here to read the full report.

For more information, please contact media@frontier-economics.com or call +44 (0) 20 7031 7000.