Skuld: Expansion of UK Emissions Trading Scheme to maritime sector

Simone Vitzthum, Assistant Vice President of Loss Prevention and Lawyer at Skuld, on Monday (25 August) wrote on the UK ETS Authority releasing an interim response about expanding the UK ETS to cover maritime emissions starting on 1 July 2026: 

The UK ETS Authority (the “UK Authority”) released an interim response 21 July 2025 (the “UK Interim Response”), following its November 2024 consultation (the “UK Consultation”), about expanding the UK ETS to cover maritime emissions starting 1 July 2026.

The expansion of the UK ETS into maritime is part of the UK Government’s Net Zero Strategy. The UK Interim Response outlines certain policy decisions to help maritime operators and regulators prepare for the sector’s inclusion in the UK ETS. The UK Authority will provide a comprehensive response to the UK Consultation in the future.

The first scheme year will run from 1 July 2026 to 31 December 2026, with subsequent years from 1 January to 31 December , which will constitute the compliance period.​

Inclusion of methane and nitrous oxide emissions

The UK Authority decided to include emissions of methane and nitrous oxide, as well as those of carbon dioxide. This applies to emissions from both the combustion and slippage of these gases. Methane and nitrous oxide emissions would be calculated on a carbon dioxide equivalent (CO2e) basis, based on their Global Warming Potential (GWP). Further details on the measure of calculating emissions from these gases will be provided in guidance in the future. For the purposes of this article, the term “emissions” includes carbon dioxide emissions as well as emissions of methane and nitrous oxide.

Application

The EU ETS will apply to ships of 5000 gross tonnage (GT) and above, with plans to review this by 2028.

Scope

Domestic voyage

The UK Authority intends to proceed with the proposed definition of domestic voyage, which would include voyages from one UK port to another UK port and voyages that start and end at the same port in the UK. This will include all emissions within a voyage, including while at anchor and while moored. Clearer guidance around emissions at anchor and defining the start and end of a voyage will be provided in future guidance.

Emissions produced during voyages to and from Crown Dependencies and Overseas Territories (CDs & OTs) are not planned to be included in the scope of the UK ETS, however, UK Authority will monitor and review the scheme and may consider this in the future.

International voyage

Questions about the inclusion of some emissions from international voyages will also be addressed by the UK Authority. The UK Authority will also address questions about including some emissions from international voyages in the future.

Note: The full article by Skuld can be found here. 

Photo credit: shraga kopstein on Unsplash
Published: 26 August, 2025