UK ETS Maritime Regulation: Timeline and Scope

UK ETS for Shipping: What to Expect

The UK Emissions Trading Scheme (UK ETS) is the United Kingdom’s carbon-pricing system, introduced in 2021 as a replacement for the EU ETS. The Authority has confirmed plans to include maritime from 1 July 2026, subject to final legislation.

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UK ETS: Scope and Coverage

Based on the UK Government’s current proposals, the UK ETS for shipping will in its initial phase:

Apply to vessels of 5,000 gross tonnage (GT) and above.
Cover domestic voyages between UK ports and emissions from ships at berth in UK ports.
Require ship operators to monitor, report and verify (MRV) their CO₂ emissions in line with UK ETS requirements.

Further expansion such as to international voyages may be considered in later phases, but details have not yet been finalised.

Allowances and Compliance

According to the UK ETS Authority’s current plans, companies covered by the maritime extension will be required to acquire and surrender UK allowances (UKAs) to cover their verified emissions.
UKAs are distinct from EU allowances (EUAs).

The UK Government has indicated that it seeks coordination with other carbon-pricing systems to minimise the risk of double counting, though no formal linking arrangements exist.

Indicative Timeline:

2025: Finalisation of preparatory steps and detailed reporting guidance.
1 July 2026: Planned start of UK ETS maritime inclusion, subject to final legislation.
2027 onwards: The first compliance cycle is expected to take place, based on verified 2026 emissions data.