UK Emissions Trading Scheme: Island Communities Impact Assessment (ICIA)

6. Step five – Preparing the ICIA

6.1 Future possible mitigations

Màiri McAllan, Cabinet Secretary for Transport, Net Zero and Just Transition for the Scottish Government, has raised the potential risk to regional connectivity and the Authority has agreed to work with the relevant parts of the UK Government to address any possible negative impacts to island communities due to UK ETS policies.

6.2 Phase out of AFA by 2026

In the final Government Response, the Authority acknowledged the possible risk to island communities from the AFA phase-out and agreed to consider which policies could be put in place to mitigate these risks. This could include further exemptions within the UK ETS or adopting policies outside of the UK ETS such as expanding the existing government support to the aviation sector (described earlier in this ICIA). The Scottish Government, as well as the Authority, will share more information on these as soon as practicable.

6.3 Inclusion of domestic maritime in the UK ETS

As the Authority has not yet finalised detailed implementation of this policy, the Scottish Government will continue to work with the other UK nations and departments to explore mitigation strategies for the island connectivity risk posed by this scope expansion. The Authority acknowledged in the Government Response the risk this policy could have on crucial services to the areas of the UK that depend on these services and to consider how to address these risks in the second maritime consultation.

The Scottish Government will update this ICIA with any agreed mitigations on either of the policies or any further information as required.