The United Kingdom Emissions Trading Scheme (UK ETS) was initiated in 2021 to curb greenhouse gas (GHG) emissions from major sectors, aligning with the UK’s goal of achieving net-zero emissions by 2050. The scheme sets a cap on total emissions within specified sectors, requiring that one allowance be surrendered for every tonne of carbon dioxide equivalent (CO₂e) emitted. This cap is progressively lowered each year to encourage decarbonization efforts.
Initially, maritime shipping was excluded from the UK ETS. However, in 2023, the UK ETS Authority revealed plans to include domestic shipping in the scheme starting in 2026. This inclusion will apply to vessels weighing 5,000 gross tonnage (GT) or more, covering emissions when they are at berth, at anchor, or navigating between UK ports. The UK government is also exploring the possibility of extending the scheme to international voyages that either start or end in the UK, a move supported by the International Council on Clean Transportation (ICCT).
Currently, the proposed 2026 scope will only address 15% of shipping emissions related to the UK. In 2025, both the European Commission and the UK government announced discussions to link the EU ETS with the UK ETS, indicating a mutual interest in harmonizing allowances and carbon pricing. This could significantly broaden the scheme’s coverage, but further actions are necessary to enhance its effectiveness.
