For Parliamentarians

Introduction 

  • The UK is falling behind other maritime nations both in terms of propulsion technologies and green infrastructure.
  • The Government is expected to publish a Spending Review in the Autumn. Maritime UK has been working collaboratively and successfully with the Department for Transport (DfT) to shape their bid in terms of maritime.  
  • Maritime UK is calling for a government and industry partnership worth £1 billion to accelerate the UK’s maritime decarbonisation programme and tackle climate change.
  • Maritime UK wants to build on the progress we’ve made over the last year, specifically the Clean Maritime Demonstration Competition (CMDC) announced as part of the Prime Minister’s Ten Point Plan for a Green Industrial Revolution, and the establishment of UK-SHORE through the DfT’s Transport Decarbonisation Plan.
  • Maritime UK estimates that our Spending Review bid will:
  • Directly create 15,200 jobs and a further 58,400 jobs throughout the supply chain (73,600 total), according to the Centre for Economics and Business Research.
  • Create jobs in all four nations of the United Kingdom, particularly in coastal communities with a tradition of maritime economic activity, including shipbuilding.
  • Relaunch our marine industries by placing the UK at the forefront of the UK design and development of zero emission vessels.
  • Reinvigorating shipbuilding hotspots across all parts of the UK will create new jobs and opportunities, showing the strength of the Union.
  • Set the UK on a course to meet its legal net-zero maritime obligations.
  • Position the UK as the world-leader in maritime decarbonisation and help transform the UK into a scientific superpower, by taking advantage of the fast-growing market for clean maritime technologies and fuels.
  • Build upon the success of the Clean Maritime Demonstration Competition, by establishing a multi-year funding programme enabling technologies like hydrogen vessels to come to market.
  • Co-fund a UK-wide programme of shore power installations and charge point facilities at ports across the country, driving innovation in UK ports and opening new green corridors with our key trade partners.
  • Unlock carbon savings of up to 100 MtCO2e by 2050 as well as significant associated reductions in air pollutant emissions, generating benefits valued at billions of pounds. Generate additional direct carbon savings of up to 6 MtCO2e by 2050.
  • Maritime decarbonisation is an untapped opportunity. Cutting carbon in maritime is cheaper on a £ per tonne basis compared to other modes, because of lack of direct intervention so far. At the same time, the UK industry has proven its capabilities and appetite to invest in clean maritime technologies.
  • Unlock industry investment in clean maritime technologies, tackling supply and demand side barriers as well as developing infrastructure and consumer confidence.
  • Bring UK-made zero emission vessels to market, building on our technology edge, as the UK is today the second market in Europe for the production of electric vehicles and we have strong competitive advantage in hydrogen and ammonia technologies.
  • Support smart shipping technology developers, enabling digital and autonomous technologies delivering energy efficiency and placing the UK at the forefront of the fourth industrial revolution, driving a science superpower.

Current political context

  • Climate change is the greatest challenge of our times. Transport is the largest emitting sector of greenhouse gases (GHG) in the UK, and within transport, maritime emissions are significant: UK domestic shipping emits more GHGs than buses and rail combined.
  • Targets have been made more challenging as international shipping emissions have been included as part of the UK’s national emissions targets for the first time. The UK’s sixth Carbon Budget will incorporate the UK’s share of international aviation and shipping emissions, bringing the UK more than three-quarters of the way to net zero by 2050.
  • The maritime sector is bearing significant costs – as an example, ports start to pay £40m of extra fuel taxes from April having not received exemptions given to other sectors, and without support to enable transition to greener fuels or technologies.
  • The Prime Minister’s Ten Point Plan provided £20 million for a Clean Maritime Demonstration Competition. This limited one-year springboard is funding feasibility studies and technology trials in clean maritime technologies, laying the foundation for a network of real-world projects.
  • This competition has been massively oversubscribed and has unlocked significant private investment, showing the world-class capabilities and appetite to invest of our clean maritime supply chain. Maritime UK is seeking to build on the recognition gained with the CMDC to urgently accelerate the sector’s transition to net zero.
  • The Government has announced its plan to publish this year a refreshed National Shipbuilding Strategy – with a primary focus on green shipbuilding. The transition to Net Zero represents a crucial opportunity for a radical reboot of our maritime industries, relaunching the sector by placing the UK at the forefront of the design and development of zero emission vessels.
  • In July, the Department for Transport published its Transport Decarbonisation Plan. Whilst not providing any new funding to support maritime decarbonisation, the plan enshrines the proposal to explore establishing a UK Shipping Office for Reducing Emissions (or UK-SHORE) into Government policy.
  • UK-SHORE was the vehicle proposed in last year’s Maritime UK spending review bid to coordinate and disperse new funding to support sector decarbonisation. The UK-SHORE brand name is now in the public domain, and this bid is designed to translate that policy ambition into reality, building on the success of the CMDC and programmes like OZEV. The vehicle should support the roll out of green infrastructure as well as investment in new propulsion technologies.
  • In March, the Chancellor announced first Freeports in England, with seven focused in coastal areas. 

Arrange a briefing 

Contact bmurray@maritimeuk.org for a briefing on the CSR bid.