Port & Regulatory

Gard: UK extends emissions trading to shipping

Lawyer Pierre Merer highlights UK Emissions Trading Scheme, its current scope, compliance requirements and a likely expansion of the scheme.

Published

12 minutes ago

August 21, 2026

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Maritime protection and indemnity (P&I) club Gard on Monday (17 August) published an article, written by lawyer Pierre Merer, highlighted UK Emissions Trading Scheme (UK ETS), its current scope, compliance requirements and a likely expansion of the scheme:

ETS in a nutshell

An emissions trading scheme is a way of putting a price on emissions without prescribing exactly how to reduce them. The regulator sets a cap on the total greenhouse gases that can be emitted by the sectors in the scheme. That cap is divided into allowances, with one allowance broadly representing the right to emit one tonne of carbon dioxide equivalent. Operators then monitor their emissions and surrender enough allowances to match them. As the cap reduces over time, allowances become scarcer and the commercial incentive to reduce emissions becomes stronger. In simple terms, an ETS works like a gradually tightening budget: the industry may decide where best to spend it, but the overall budget is intended to shrink in line with climate targets.

For shipping, the best-known reference point is the EU Emissions Trading System. Launched in 2005, the EU ETS was the world’s first carbon market and remains one of the largest globally. Maritime transport has been included in the EU ETS since 2024, with obligations applying to emissions from voyages involving European Economic Area ports and emissions at berth within the EEA. The EU scheme is not an isolated example. Carbon pricing is spreading through a patchwork of regional and national initiatives. Around 40 emissions trading systems in force have been identified globally, including ETS-type schemes or mechanisms in jurisdictions as diverse as Australia, Mexico or Kazakhstan.

Domestic scope for now

The United Kingdom developed its own ETS after leaving the EU. Originally limited to power generation, aviation and energy-intensive industries the UK ETS was extended to maritime transport through the Greenhouse Gas Emissions Trading Scheme (Amendment) (Extension to Maritime Activities) Order 2026.

At this stage, the UK ETS applies to ships of 5,000 gross tonnage and above, regardless of flag, in respect of carbon dioxide, methane and nitrous oxide emissions from domestic UK voyages and in-port activities from 1 July 2026. A domestic voyage means a voyage beginning and ending at a UK port of call, including a voyage beginning and ending at the same UK port of call (with the exception that the UK has introduced a 50% surrender deduction for voyages between Great Britain and Northern Ireland). In-port activity includes emissions at berth and movements within a UK port of call. Assuming that a voyage itself is international and therefore not yet caught as a sea passage under the current UK ETS, emissions while the ship is in a UK port may still be within scope.

Offshore ships will be included from 1 January 2027, and certain exemptions will continue to apply, including for specified government activities, fish-catching and fish-processing ships, and Scottish ferry services as defined in the legislation.

Note: The full article by Gard can be read here.

Photo credit: shraga kopstein on Unsplash
Published: 21 August, 2026

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China: CIMC Enric and Sinopec to team up on LNG, methanol bunker fuels in new deal

Clean energy equipment and services provider CIMC Enric on Monday (17 August) said it has signed a strategic cooperation agreement with Sinopec Fuel Oil Sales Co Ltd, covering LNG, green methanol, shipbuilding and new energy for marine applications.

Under the new agreement, the companies will deepen cooperation across the LNG value chain and develop bunkering solutions including truck-to-ship bunkering services. They also plan to expand into emerging marine fuels and energy solutions, including green methanol and sustainable aviation fuel (SAF).

The partnership will focus on five areas: energy-resource cooperation, shipbuilding, marine-fuel bunkering, vehicle-related services and integrated services.

The agreement was signed in Shenzhen on 14 August by Yang Xiaohu, executive director and president of CIMC Enric, and Xu Tao, deputy general manager and Party committee member of Sinopec Fuel Oil.

The cooperation will span commercial implementation, industry development and technology innovation.

The partnership comes as the shipping industry accelerates its transition towards lower-carbon fuels amid tightening International Maritime Organization emissions regulations and China’s carbon-reduction goals.

CIMC Enric specialises in equipment for the clean-energy sector, while Sinopec Fuel Oil leverages the resource and supply network of China Petroleum & Chemical Corporation (Sinopec). Both said their complementary capabilities provide a basis for moving beyond a conventional equipment-supply relationship towards broader cooperation integrating equipment, fuels, applications and technology.

The two companies began working together in October 2022, initially focusing on LNG and CNG storage and transportation equipment. Their cooperation has since expanded into marine equipment, green methanol bunkering, storage and transportation equipment, and external gas-source procurement.

The companies said they will establish a regular cooperation mechanism and develop detailed projects to accelerate implementation. The partnership is intended to strengthen collaboration between energy-equipment and energy-supply companies and support the maritime industry’s transition towards lower-carbon fuels.

Photo credit: CIMC Enric
Published: 21 August, 2026

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Azane signs ammonia bunkering deal with Equinor, first deliveries due in H2 2026

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Azane signs ammonia bunkering deal with Equinor, first deliveries due in H2 2026

Azane Fuel Solutions (Azane) on Thursday (20 August) said it has signed a framework agreement with Equinor Energy AS for the supply of ammonia and the execution of truck-to-ship ammonia bunkering operations for ammonia-fuelled vessels.

The first deliveries will commence during the second half of 2026. The agreement establishes a framework for future ammonia fuel deliveries and bunkering operations supporting the maritime industry’s transition towards lower-emission solutions.

“This agreement marks an important milestone for Azane and demonstrates growing confidence in ammonia as a marine fuel,” said Steinar Kostøl, CEO of Azane.

“Truck-to-ship bunkering offers a practical and flexible solution for the early adoption of ammonia-fuelled vessels while the broader ammonia fuel ecosystem continues to develop.”

The agreement covers truck-to-ship ammonia bunkering operations, where ammonia is transported to the quayside and transferred directly to the receiving vessel.

The contract supports Azane’s strategy of enabling near-term deployment of ammonia as a marine fuel while continuing to develop dedicated ammonia infrastructure for future market growth.

Photo credit: Azane Fuel Solutions
Published: 21 August, 2026

Nuclear

Core Power and Port of Corpus Christi to explore maritime nuclear readiness

Study at the port will examine opportunities for firm, reliable power from floating nuclear power plants and readiness for future calls by nuclear-powered commercial ships.

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August 21, 2026

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Core Power and Port of Corpus Christi to explore maritime nuclear readiness

UK-based firm Core Power on Wednesday (19 August) said it has signed a Memorandum of Collaboration with the Port of Corpus Christi Authority (PCCA), establishing a framework for a site-specific maritime nuclear readiness study at the Port of Corpus Christi.

The study will examine how a major US energy and trade gateway could prepare for two additional distinct future roles: as a potential location for a floating nuclear power plant (FNPP) supplying firm power for port and regional demand, and as a gateway for future calls by nuclear-powered commercial ships.

For the Port, the work is intended to provide a practical evidence base for considering how future ship-based power and shipping technologies could support regional growth, energy resilience and long-term competitiveness.

For Core Power, the study will build out the practical requirements of its two product pathways in a real port operating environment. FNPPs require suitable sites, grid connections, customers, regulatory and environmental pathways, operating arrangements and long-term service support. Nuclear-powered commercial ships require safe and predictable pathways for transit, berthing and routine port operations.

“The Port of Corpus Christi provides an opportunity to assess both pathways separately while understanding the shared infrastructure, safety, regulatory and commercial questions around them,” the company said.

Separately, PCCA Commissioners have agreed to execute a Memorandum of Cooperation with the U.S. Department of Transportation’s Maritime Administration to examine the technical, regulatory and operational requirements for U.S. seaports to support the potential deployment of floating nuclear power plants and provide safe harbour for civil nuclear-powered vessels.

The agreement recognises PCCA’s work with Core Power to assess the feasibility of both pathways.

“Taken together, these separate but complementary agreements represent an important step toward translating maritime nuclear technology into practical readiness requirements for US ports,” Core Power said.

Jeff Pollack, Chief Strategy and Innovation Officer of the Port of Corpus Christi Authority, said: “Port Corpus Christi, as the preeminent energy gateway in North America, is committed to remaining a leader in the global energy marketplace, even as that marketplace expands and evolves.

“This collaboration will help us understand what would be required technically, environmentally, operationally and commercially for floating nuclear power plants and future calls by nuclear-powered commercial ships to be considered in the real-world context of the Port. It is about gathering evidence and keeping our region competitive for future investment, industry, and high-value jobs.”

Photo credit: Core Power
Published: 21 August, 2026