UK plans to implement its own ETS by 2024
The UK's ETS Authority is looking to gauge views from maritime companies and other stakeholders as it develops its ETS (Emission Trading Scheme).
PHOTO: Cruise vessel arriving at UK's Portsmouth International Port. Portsmouth
UK ETS was conceptualised in January 2021, after Brexit and the UK's withdrawal from the EU-wide ETS.
The proposed UK ETS will apply to domestic maritime routes, where the obligation of compliance will rest with shipowners and operators.
The initial draft of UK ETS states that bunkering firms and fuel distributors would require to report volumes sold to vessels on domestic voyages at the customs duty point.
Emissions would be calculated based on the following:
- Amount of greenhouse emission for which liable = Volume of fuel used on a qualifying journey X carbon intensity of fuel type
The UK ETS Authority says it seeks to design the policy in a way that avoids double-counting emissions and with a lower threshold that does not overburden smaller actors.
It expects the consultation process to be finalised by 17 June 2022.
Domestic shipping emitted around 6 mt of carbon dioxide in the UK in 2019, government figures show. That made up about 5% the country’s greenhouse gas (GHG) emissions from all domestic transport, and more than rail and bus emissions combined. Offshore vessels were the largest emitters.
The ETS forms part of the UK's efforts to reach net zero GHG emissions by 2050.
