UK Emissions Trading Scheme Considers Inclusion of Maritime Sector

The UK Emissions Trading Scheme (ETS) Authority is considering expanding the scheme to include the maritime sector and is seeking input on various proposals. The UK Government initiated a consultation period in March 2022 to develop its emissions trading scheme. The UK ETS Authority, consisting of the UK Government, Scottish Government, Welsh Government, and the Department of Agriculture, Environment, and Rural Affairs in Northern Ireland, is gathering stakeholder views on implementing the UK ETS in the maritime industry. The scheme currently operates in various industry sectors across England, Scotland, Wales, and Northern Ireland.

The UK aims to include the maritime sector in the UK ETS to address the issue of maritime fuels not reflecting their environmental costs. By incorporating maritime emissions into the scheme, the UK government believes it can encourage the adoption of low carbon fuels and support the deployment of fuel-efficient technologies and practices. The consultation seeks input on the scope of the scheme, adjustments to the UK ETS cap to include maritime emissions, participation in the scheme, impacts of the scheme, and potential future expansion to cover additional maritime emissions.

The consultation process also focuses on Chapter 7 of the proposed policy, which outlines plans to expand the UK ETS to include the domestic maritime sector. The UK government anticipates that integrating maritime emissions into the scheme can help overcome barriers to decarbonizing the sector. Stakeholders, including individual companies, representatives of the shipping industry, environmental NGOs, academics, and think tanks, are encouraged to provide their views on the implementation and potential expansion of the UK ETS to include maritime emissions.

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