UK reaffirms inclusion of shipping emissions in UK ETS from 2026

The UK government has reiterated that it will include UK’s domestic shipping emissions under its Emissions Trading Scheme (ETS) from 2026.

PHOTO: Aerial view of Port of Aberdeen in the UK. Twitter of @PortofAberdeen

UK ETS Authority will submit two consultations on adding shipping to the ETS in “due course”, according to the government website.

ETS Authority has proposed that the ETS should initially by applied to vessels over 5,000 gross tonnage (GT), according to its initial consultation report released last year. Meanwhile, it will review lowering the threshold to include vessels over 400 GT.

The emissions can be calculated based on the volume of fuel used multiplied by the carbon intensity of that fuel, it suggested.

ETS Authority estimated that "emissions to be included from domestic maritime in the first year of inclusion in the UK ETS (2026) would be equivalent to around 2 million UK allowances".

Inclusion of shipping emissions under the UK ETS could raise £310 million ($388 million) over three years starting from 2026, the UK Treasury has estimated.

By Konica Bhatt

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