Written questions by Holden.

A) what estimate his Department has made of the average additional cost per passenger ticket on domestic ferry services arising from the inclusion of domestic maritime within the UK Emissions Trading Scheme from 2026; b) what estimate has been made of the average additional cost per vehicle crossing; and c) whether these estimates vary by route type, including island-mainland, short-sea, and longer-distance domestic routes.

The Government has not produced estimates of the additional cost per passenger ticket arising from the inclusion of domestic maritime within the UK Emissions Trading Scheme. The Impact Assessment considers costs at sector-level rather than by route or fare type, as ticket prices and commercial decisions vary widely and cannot be robustly modelled. The Assessment finds compliance costs are modest relative to operators’ overall costs and does not identify significant consumer price impacts, but notes early evidence from the EU Emissions Trading System suggesting short‑sea shipping routes and ferry fares increased by 3-11% under comparable carbon pricing.

With reference to page 19 of the Final stage impact assessment entitled UK Emissions Trading Scheme (ETS) Scope Expansion - Domestic maritime, published on 25 November 2025, for what reason no quantified analysis was undertaken on the regional and equalities impacts.

The Impact Assessment did not include quantified regional or equalities analysis because the available evidence did not support robust estimations of impacts at that level of granularity. The Assessment finds that compliance costs are modest relative to operators’ overall costs and, as a result, a qualitative assessment found that regional or distributional impacts are expected to be limited. The Government will review the maritime element of the United Kingdom Emissions Trading Scheme in 2028 with further consideration of regional or distributional impacts.

Pursuant to the Answer of 9 January 2026 to Question 100965, if he will provide a link to that impact assessment.

The impact assessment for the response to the consultation on expansion to domestic maritime emissions can be found here:https://assets.publishing.service.gov.uk/media/692591b59fd433badebc3140/uk-ets-domestic-maritime-authority-response-ia.pdf We will publish a full impact assessment on the expansion to international voyages alongside the Authority Response to the consultation.

Whether he will approve arrangements under which electricity generated by Drax from imported wood pellets is used to supply data centres; and what assessment he has made of the carbon and environmental impact of such use.

The government is committed to ensuring that the UK’s AI infrastructure is developed in a way that is both sustainable and aligned with our net zero ambitions. The Low-Carbon Dispatchable Contract for Difference, covering Drax's generation from 2027-31, requires Drax to request permission should they wish to supply power to a data centre from their biomass units during this period. Should such a request arise, DESNZ, working with the Low Carbon Contracts Company, would assess this on its merits, taking account of security of supply, value for money, and sustainability matters. Without such permission any data centre on the site could not draw power directly from the biomass units during this period. Regardless of the supply arrangements, Drax is contractually obliged to meet enhanced sustainability criteria for their power generation, which include requiring 100% of the biomass used to be obtained from sustainable sources.

With reference to the press release entitled Fuel margins remain “persistently high” and this is not explained by operating costs, CMA finds, published on 22 December 2025, what steps he is taking to help reduce average fuel margins for non-supermarket fuel retailers.

The Government notes the Competition and Markets Authority’s (CMA) annual road fuel monitoring report. Addressing the CMA’s findings, the Government is implementing Fuel Finder, a statutory open data scheme for road fuel prices to improve price transparency and incentivise competition in the market from both supermarket and non-supermarket retailers. The CMA also has statutory powers under the Digital Markets, Competition and Consumers Act 2024 to monitor the market and advise on any further action.

Whether Drax’s current Contract for Difference contains any binding obligations requiring the development and deployment of carbon capture and storage; and what assessment his Department has made of the continued burning of imported wood pellets for electricity generation under that contract.

The current Contract for Difference (CfD) and recently announced Low-Carbon Dispatchable CfD agreements will be in place until 2031 and do not include contractual requirements for the development of carbon capture and storage (CCS) at the site. The focus of the new CfD is ensuring security of supply for the contract duration, and the development of CCS in the future remains under consideration. The Government published an impact assessment in early 2024 as part of its consultation on support options for large-scale biomass generators. This assessment was consistent with the views of the Intergovernmental Panel on Climate Change (IPCC) which recognise that bioenergy can play a significant role in decarbonising economies, provided policies are in place to mitigate the use of unsustainable biomass.

What the net zero targets for the Department and its arm’s-length bodies are; and what guidance has been issued on adopting net zero targets earlier than 2050.

The Net Zero target in the Climate Change Act 2008, is a target for the whole of the UK, not individual departments or arms-length bodies.Greening Government Commitments are the central framework setting out the actions UK government departments and their agencies will take to reduce their impacts on the environment, including setting targets to reduce emissions, during the framework period. Defra are reviewing the Greening Government Commitments to ensure that they remain aligned with government priorities.

Whether his Department has made an estimate of the compliance cost to the maritime sector of expanding the UK Emissions Trading Scheme to international maritime voyages in each of the subsequent ten years from 2028.

We published a consultation in late November seeking views on a number of proposals to expand the UK ETS to the international maritime voyages. When we responded to the consultation on expansion to domestic maritime emissions, we also published a full impact assessment. This includes detail on the compliance costs for the expansion to domestic voyages. We will publish a full impact assessment on the expansion to international voyages alongside the Authority Response to the consultation.

What recent assessment he has made of the impact of rising carbon costs on the viability of UK oil refineries.

The Government recognises the competitiveness challenges facing the refining industry and is determined to support the industry to address them and ensure the long-term future of the refining sector in the UK. In the Autumn Budget, the Government announced it is considering the feasibility and impacts of including refined products in the Carbon Border Adjustment Mechanism in future. The Emissions Trading Scheme Authority also recently published its Free Allocation review response which confirmed the sector remains eligible for free allocation, with current benchmarks maintained until 2028. UK Emissions Trading Scheme: free allocation review - GOV.UK.

Whether his Department has had discussions with Exxon Mobil Corp on the potential impact of rising carbon costs on the viability of UK refineries since its evidence to Parliament in October 2025.

Details of Ministers' and Permanent Secretaries' meetings with external individuals and organisations are published quarterly in arrears on GOV.UK.

Whether he plans to expand the UK Emissions Trading Scheme to cover international shipping.

The UK ETS Authority has published a consultation on expanding the UK ETS to international maritime voyages from 2028. We propose that 50% of emissions from international maritime voyages are covered by the scheme. The consultation runs until 20th January 2026.

What assessment he has made of the adequacy of the UK’s current regulatory framework for supporting cleaner hydrogen production for industrial sites.

Low carbon hydrogen will play a vital role in decarbonising industry, enabling the transition to a low carbon economy while protecting jobs and driving growth across the UK’s industrial heartlands. The current regulatory framework provides a strong foundation, including the framework to award Hydrogen Production Business Model support to producers to enable deployment. The Government will continue to ensure suitable regulatory frameworks for hydrogen as the industry develops, working with Devolved Governments and regulators. For instance, the Government published a response to consultation on an economic regulatory framework for hydrogen pipelines on 3 December.

Whether he has considered providing temporary relief from CO₂ compliance costs for UK refineries, in the context of two of the six UK refineries closing.

The Government recognises the vital role UK refineries play in energy security and continues to work closely with the industry. The UK Emissions Trading Scheme (ETS), incentivises cost-effective decarbonisation, and the ETS Authority decides any changes to it. The Free Allocation Review Response published in November confirmed the sector remains eligible for free allocation, with current benchmarks maintained until 2028, allowing time to develop supportive policy. The Government is committed to mitigating carbon leakage risk and, as announced at Budget is considering the feasibility and impacts of including refined products in the Carbon Border Adjustment Mechanism in future.

What comparative estimate his Department has made of (a) electricity prices for energy-intensive industries in (i) the UK and (ii) France and Germany and (b) grid and network charges in the UK and those countries.

The requested comparative estimates can be found in the Quarterly Energy Prices statistical publication published on GOV.UK. The most recent comparisons with EU countries are found in the June 2025 edition. Further comparative estimates including a discussion of the breakdown of network charging can be found in the consultation outcome relating to: The proposed uplift to the Network Charging Compensation Scheme for energy intensive industries published by the Department for Business and Trade in October of this year, and available here: Energy intensive industries (EIIs): consultation on the proposed uplift to the Network Charging Compensation Scheme for energy intensive industries - GOV.UK Estimates were also set out in the "international price gap" section of the consultation on the British Industrial Competitiveness Scheme, published on 24th November 2025. This consultation will be open for responses until 19th January 2026, and is available here: British Industrial Competitiveness Scheme: consultation on scheme eligibility and approach - GOV.UK

If he will make a comparative assessment of the carbon intensity of (a) domestically produced oil and gas and (b) imported liquefied natural gas in the last 5 years.

The North Sea Transition Authority (NSTA) has published annual Emissions Monitoring Reports since 2021. These contain figures for carbon intensity or emissions intensity (relating to carbon dioxide and methane) of domestically produced oil and gas compared to fossil fuels from other sources, including imported Liquefied Natural Gas. The latest report and methodology can be accessed online:Emissions Monitoring Report 2025Emissions Monitoring Report 2025 methodology

What assessment he has made of the impact of the North Sea oil and gas sector on employment and economic growth; and what steps he is taking to safeguard jobs in the offshore energy sector.

Our oil and gas sector significantly contributes towards our economy, and directly employs tens of thousands of highly skilled workers right across the UK. However, the natural decline of oil and gas in the North Sea has seen more than 70,000 jobs lost in the last decade. On 26 November the Government published its North Sea Future Plan. This sets out how we will protect current jobs in oil and gas, while also securing the next generation of good jobs. This includes a new North Sea Jobs Service to provide end-to-end support for the current workforce to access new opportunities.

To publish all assessments his Department has made of the implications for UK energy security of importing approximately 40% of the UK’s energy in the last five years.

The Department and Ofgem jointly publish annual statutory security of supply reports, which provide a comprehensive assessment of the availability of secure and affordable electricity, gas and oil to meet the UK’s energy needs. These reports consider the contribution of both domestic production and imports to the UK’s overall energy security. The link to the most recent report is included below. Statutory security of supply report: 2024 - GOV.UK

If he will take steps to prioritise domestic oil and gas production over imports.

Our priority is a fair, orderly transition to homegrown clean energy to ensure energy security and protect billpayers. Further oil and gas exploration and production licences would not meaningfully increase UK production levels, nor would they change the UK’s status as a net importer of oil and gas. The UK benefits from a secure and diverse energy system, drawing on multiple sources to reduce reliance on any single supply. Our ‘North Sea Future Plan’ sets out how we will implement our manifesto commitments in relation to domestic oil and gas production.

In the next two years, how many new oil and gas licences his Department will examine and what proportion he estimates will be approved; and what assessment he has made of the impact of licensing policy on the future viability of existing North Sea infrastructure.

The Government will legislate to meet its landmark manifesto commitment to end new licences to explore new oil and gas fields. To support existing fields and infrastructure, the Government will introduce new Transitional Energy Certificates for a managed, prosperous and orderly transition.The evidence suggests that even if new licenses were issued it would have only a marginal impact on overall production in the North Sea given it is a super mature basin which has been in decline for more than two decades.

How much (a) their Department and (b) its arm’s length bodies have spent on (i) installing electric vehicle charging facilities and (ii) purchasing electric vehicles since 4 July 2024; and what estimate their Department has made of the difference in capital cost between (A) the electric vehicles purchased by their Department and (B) comparable (1) petrol and (2) diesel models.

The Department occupies GPA and HMRC estate and therefore has not purchased any electric vehicle charging points at its sites or purchased any electric vehicles. Data for arms-length-bodies is not held centrally.