UK extends emissions trading to shipping
Since 1 July 2026, ships operating on domestic UK voyages have been subject to the UK Emissions Trading Scheme (UK ETS). While many owners and charterers are already familiar with the EU ETS, the UK’s new regime adds another layer to an increasingly complex regulatory landscape. ETS in a nutshell An emissions trading scheme is ...
On July 1, 2026, the United Kingdom began applying its own Emissions Trading Scheme (UK ETS) to shipping operations within its domestic waters. This move follows the UK's departure from the European Union's EU ETS, which had previously included shipping emissions since 2024. The UK ETS targets ships larger than 5,000 gross tonnage and encompasses carbon dioxide, methane, and nitrous oxide emissions from domestic voyages and port activities.
Compliance falls on maritime operators, typically the ship's registered owner, who must register for a METS account, submit an emissions monitoring plan, monitor emissions, have reports verified, and surrender allowances. The scheme aims to gradually reduce total greenhouse gas emissions, with caps tightening over time. The UK ETS Authority is also considering expanding the scheme to cover 50% of international voyages to and from the UK by 2028, with the possibility of lowering the 5,000 GT threshold in the future.
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