UK ETS maritime expansion takes effect from 1 July

Offshore vessels have been given a six-month transition period, with mandatory compliance beginning on 1 January 2027.

IMAGE: A container port on the southeast coast of the UK. Getty Images.

The UK Emissions Trading Scheme (UK ETS) has been expanded to include the maritime sector from 1 July.

The scheme applies to commercial shipping companies operating cargo and passenger vessels with a gross tonnage (GT) of 5,000 or more on domestic voyages between UK ports.

This will cover emissions from domestic port-to-port voyages, port calls, and time at berth. 

Under the expanded scheme, regulated entities are required to purchase and surrender UK emissions allowances equivalent to their verified annual greenhouse gas emissions.

Carbon dioxide (CO2), along with methane and nitrous oxide emissions, must be counted and converted into carbon dioxide equivalent (CO2e).

For voyages between ports in Great Britain, 100% of calculated emissions must be covered by allowances. For voyages between ports in Great Britain and Northern Ireland, 50% of calculated emissions must be covered.

Reporting under the UK ETS begins today. Reports for 2026 are due by 31 March 2027, and reports for 2027 must be submitted by 31 March 2028.

The first surrender deadline, covering emissions from both years, is 30 April 2028.

By Gautamee Hazarika

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