Port & Regulatory

UK ETS expansion to maritime sector: DNV outlines key mechanisms and implications

DNV highlighted key information and implications of the UK Emissions Trading Scheme, which will be expanding to maritime activities from 1 July 2026.

Published

2 months ago

June 8, 2026

Admin

Classification society DNV on Friday (5 June) highlighted key information and implications of the UK Emissions Trading Scheme, which will be expanding to maritime activities from 1 July:

The UK Emissions Trading Scheme (ETS) is rapidly evolving, shaping how industries price and manage greenhouse gas emissions as the UK moves toward net-zero. As the scheme expands and its carbon market strengthens, understanding its key mechanisms and implications is becoming increasingly important for the maritime sector.

UK ETS implementation timeline

The UK ETS expands to maritime activities from 1 July 2026, and the implementation timeline for the UK ETS in shipping introduces several steps that operators need to follow to be compliant. One of the first requirements is the submission of an Emissions Monitoring Plan (EMP) by the ship operator to the regulator (an equivalent to the EU ETS administering authority). An EMP is submitted per company (operator) and includes relevant data such as a list of ships, their particulars, emission sources, etc. The EMP does not undergo assessment by a verifier but instead is subject to approval by the regulator.

Operators must use an independent verifier accredited by UKAS, such as DNV, to verify their Annual Emissions Report (AER), a company-level report. Operators must submit their AER by 31 March each year and must surrender the number of emissions allowances by 30 April. The deadline to surrender allowances for the first scheme year (1 July to 31 December 2026) will be 30 April 2028. A standard reporting year runs from 1 January to 31 December, while in 2026, only half of the year is subject to reporting (from 1 July, 2026). A summary of the timeline is illustrated in the following figure:

uk ets graphic 1 timeline

Further, Appendix 1 provides an annual wheel illustration of the UK ETS process.

UK ETS scope and compliance cycle

As of 1 July 2026, the UK ETS applies to cargo and passenger vessels of 5,000 GT and above, with the inclusion of offshore ships delayed until 1 January 2027. The scheme covers emissions from domestic voyages between UK ports. A domestic voyage includes voyages from one UK port to another, as well as voyages that start and end at the same UK port. In addition, emissions generated during ports of call are within scope, including time spent at berth, whether moored or anchored, at UK ports and offshore installations.

Ship operators are required to monitor and report emissions occurring in UK ports and on domestic UK voyages. As a result, emissions from ports of call on international routes are also captured under the UK ETS. The greenhouse gases covered are aligned with those under the EU ETS and include emissions from combustion and slippage of carbon dioxide (CO₂), methane (CH₄) and nitrous oxide (N₂O), calculated on a tank‑to‑wake basis. Methane and nitrous oxide are reported using IPCC AR5 global warming potential values (CH₄ = 28, N₂O = 265).

Exemptions apply to ships engaged in government non‑commercial maritime activities, fish‑catching and fish‑processing vessels, and ships operating Scottish ferry services. In contrast to the UK MRV framework (revoked as of 2 April 2026), voyages between the UK and ports outside the EEA, including those in UK Overseas Territories and Crown Dependencies, are not included in the UK ETS, as they are not considered domestic voyages. In addition, a 50% deduction applies to the UK ETS surrender obligation for voyages between Northern Ireland and Great Britain. Other exemptions are stated in the regulations.

The following figure illustrates the principles for a voyage between Northern Ireland and Great Britain, where the surrender obligation, is 50%, while port stays in both Northern Ireland and Great Britain are subject to a 100% surrender obligation. For a voyage between France and Great Britain, there is no (0%) surrender obligation for the voyage itself; however, the port stay in Great Britain remains subject to a 100% surrender obligation.

uk ets graphic 2

Note: The full version of DNV’s Technical and Regulatory News on UK ETS can be found here.

Photo credit: DNV and william william on Unsplash
Published: 8 June, 2026

Related Topics:Business - Events Others - Classification society Port & Regulatory - Decarbonisation

Up Next

Seascale Energy and LR Advisory team up on low-carbon bunker fuels and decarbonisation

Don't Miss

Singapore: Notice of intended dividend issued for Parakou Shipping Pte Ltd

LNG Bunkering

Stabilis Solutions targets Q3 2028 launch for Galveston LNG bunkering facility

Firm received a LOR from US Coast Guard following a review of a LNG Facility and associated waterfront LNG loading, marine transportation, and LNG bunkering operations in the Port of Galveston.

Published

2 days ago

July 24, 2026

Admin

Stabilis Solutions targets Q3 2028 launch for Galveston LNG bunkering facility

Clean energy production solutions provider Stabilis Solutions (Stabilis) on Friday (24 July) said the proposed Stabilis Galveston LNG Facility is anticipated to be in production by the third quarter of 2028.

It will come complete with the delivery of the first new-build, dedicated Jones Act-compliant LNG bunker barge in the Galveston/Houston area.

“This is a significant regulatory and project milestone for Stabilis,” the company said.

This comes following Stabilis receiving a Letter of Recommendation (LOR) from the US Coast Guard following their formal review of the proposed Stabilis Galveston LNG Facility and associated waterfront LNG loading, marine transportation, and LNG bunkering operations in the Port of Galveston.

“This critical endorsement of our project from the USCG Captain of the Port to the Port of Galveston and the Galveston Fire Marshal comes after a rigorous safety and security review process,” it said.

“This included a comprehensive evaluation of the potential risks, including navigation hazards, vessel traffic density impacts, emergency response capabilities, maritime security threats, and application of appropriate mitigation measures.”

Manifold Times previously reported Stabilis terminating a previously announced 10-year agreement with a leading investment-grade global marine operator to supply LNG from the company’s proposed 350,000 gallon-per-day Galveston liquefaction facility.

As a result, the company expected delays to the anticipated final investment decision, project financing, and development timeline for the Galveston LNG facility.

Photo credit: Stabilis Solutions
Published: 24 July, 2026

Wind-assisted

Fairfield Maritime Japan, Neste ink charter deal for WAPS-equipped MR tanker duo

Vessels will utilise low-sulphur fuels and will be capable of being retrofitted to operate on methanol at some point in the future.

Published

2 days ago

July 24, 2026

Admin

Fairfield Maritime Japan (FMJ) on Wednesday (22 July) said it has signed a long-term charter contract with Neste for two vessels.

The agreement enables FMJ to fund and manage the construction of two Ice Class 1A medium range (MR) oil and chemical tankers for Neste’s transports to and from its refinery in Porvoo, Finland. Neste is a producer of renewable diesel and sustainable aviation fuel (SAF), also refining a wide range of oil products in Porvoo.

Fairfield Maritime Japan Ltd. is a portfolio company of Fairfield-Maxwell Ltd., a family office for the Sugahara family headquartered in New York City.

The two new ships will each have the capacity to ship 50,000 deadweight tons (DWT) and will be built by HD Hyundai Co., Ltd. of South Korea and delivered in the first and second quarters of 2029.

As Ice Class 1A certified ships, the two new vessels will be capable of navigating in ice conditions with the support of icebreakers, adhering to the Finnish Swedish Ice Class Rules.

These rules encompass the specific requirements for vessels navigating the Baltic Sea during the winter season. The highly ice-resistant ships will be able to approach and depart Porvoo in the winter months, contributing to operational continuity for Neste’s Porvoo facility.

The vessels will utilise low-sulphur fuels and will be capable of being retrofitted to operate on methanol at some point in the future.

The vessels will be ready for the future with the possibility to connect to shore power when that is available. In addition, the ships will be equipped with wind-assisted propulsion systems (WAPS) to supplement the ships’ main engines. These technologies will reduce fuel consumption, emissions and operating costs.

“We’re pleased to partner with Fairfield Maritime Japan and Fairfield-Maxwell. With these new state-of-the-art vessels, we are continuing our efforts to deliver safe and efficient sea transport to and from our Porvoo refinery,” said Sander Wilgenhof, Head of Chartering, Neste.

“We are proud to be Neste’s long-term partner,” said Ryuichi Osonoe, President, Fairfield Maritime Japan.

“We believe that our knowledge and expertise will significantly assist Neste in its sea transportation. We are looking forward to seeing these two new ships cross the sea to safely export out of Neste’s Porvoo refinery.”

“Fairfield has been a partner of choice for world-class shippers for nearly 70 years,” said Byron Sugahara, chairman of the board of Fairfield-Maxwell.

“This agreement with Neste is confirmation that our family’s legacy in the shipping industry remains strong and provides a solid foundation for continued growth and success.”

Photo credit: Scott Graham
Published: 24 July, 2026

Nuclear

Long Beach becomes first US port to partner with MARAD on nuclear-powered shipping

It became the first Port in the nation to sign a Memorandum of Cooperation with MARAD to advance work on development of SMR technology to power commercial vessels, ports and other maritime assets.

Published

2 days ago

July 24, 2026

Admin

Long Beach becomes first US port to partner with MARAD on nuclear shipping

The Port of Long Beach on Wednesday (22 July) said it became the first Port in the nation to sign a Memorandum of Cooperation with the US Department of Transportation’s Maritime Administration (MARAD) to advance work on development of small modular reactor (SMR) technology to power commercial vessels, ports and other maritime assets.

The agreement represents a significant milestone, making Long Beach the first US seaport to formalise a partnership with MARAD to establish nuclear-powered vessels for commercial service.

“This first-of-its-kind partnership with MARAD allows us to leverage strong federal leadership and private sector innovation to catalyse SMR technology as we safely and securely support the next generation of shipping,” said Port of Long Beach CEO Dr. Noel Hacegaba.

“We’re building the Port of the Future in Long Beach, where we’ve led in global trade by moving USD 300 billion in cargo annually to support 2.7 million American jobs, and we will continue our tradition of leadership as we partner to advance nuclear energy in maritime and beyond.”

“Under President Trump’s and Secretary Duffy’s leadership, MARAD is taking decisive action to revitalise US shipbuilding and secure our national energy dominance,” said Maritime Administrator Stephen M. Carmel.

“This milestone agreement with the Port of Long Beach brings cutting-edge Small Modular Reactor technology into active testing. It ensures our maritime supply chains stay operational under any contingency while training the next generation of high-skilled American mariners.”

The agreement builds on momentum from MARAD’s Request for Information on 7 May, issued in the Federal Register, seeking industry input on the development of a US-built, scalable and commercially viable SMR for the nation’s marine transportation system.

It also complements the Port’s new lease agreement with BlueCore Energy Inc., which allows the company to assemble, test and store maritime power modules, adding private-sector expertise to this the partnership with an American energy and technology company on the forefront of SMR development.

Demand for reliable electricity sources is forecast to grow substantially as the Port pursues a goal to double container volume by 2050. Under the agreement, the Port and MARAD will collaborate with the U.S. Coast Guard, the Department of Energy and the Nuclear Regulatory Commission to help define the operational protocols, safety standards and inspection processes needed to support the safe arrival and servicing of SMR-powered vessels at US ports, as well as to develop and share other best practices.

Photo credit: Port of Long Beach
Published: 24 July, 2026