Wightlink Warns Government’s New Emissions Scheme Could Increase Pollution And Hit Island Services

Wightlink has raised serious concerns over the Government’s decision to extend the UK Emissions Trading Scheme (ETS) to the maritime sector, warning it could have “damaging and unintended consequences” for ferry operators and Island communities.

The scheme, due to take effect in summer 2026, is expected to cost operators such as Wightlink up to £1 million a year.

The company says the additional costs – combined with rising National Insurance contributions and higher business rates – could delay key investment projects, including its planned next-generation hybrid ferry scheduled for order in 2026.

Under the ETS, operators must buy allowances for every tonne of CO₂ emitted above a set threshold.

Wightlink says it is committed to decarbonisation, but that progress is being hindered by a lack of electrical grid capacity at UK ports.

A recent British Ports Association report found that 70% of ports are already at or near their maximum available power.

The company warns the current design of the scheme could inadvertently encourage operators to run smaller ferries exempt from ETS charges — even though these produce higher emissions overall — rather than larger hybrid or electric vessels that carry heavier battery systems.

Wightlink also criticised the Government for not granting the Isle of Wight the same exemption given to Scottish island services.

Northern Ireland has additionally been awarded a 50% reduction in ETS surcharges to match EU rules, prompting questions over fairness and consistency.

Wightlink CEO Katy Taylor said the policy risks undermining the UK’s environmental aims:

“We’ve invested over £30 million in sustainable technology, yet we face an impossible challenge — there simply isn’t the grid capacity to make our services greener.

"Instead of supporting long-term emissions reductions, the current approach penalises operators like us without offering solutions.

"The ETS may aim to cut emissions, but in practice it risks doing the opposite – and it will be Island communities who pay the price.”

Isle of Wight East MP Joe Robertson (Conservative) said he was “highly disappointed” the Island has not been granted an exemption, adding:

“Ferries are our Island’s only connection to the mainland and are the very definition of a lifeline service.

"It is incomprehensible that the Government has not recognised this, as they have for Scottish islands.”

Isle of Wight West MP Richard Quigley (Labour) echoed concerns over local grid limitations, saying:

“While I support the Government’s ambitions for cleaner transport, without sufficient investment in grid capacity this policy makes the low-carbon transition incredibly difficult.

"I welcome further consideration of how these measures can reflect the unique circumstances of our Island community.”

The UK ETS maritime expansion is scheduled to come into force in 2026 unless revised by the Government.