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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.

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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

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LNG Bunkering

China: CNOOC achieves over 200,000 m3 of bonded LNG bunkering volume in 2026 so far

CNOOC’s two LNG bunkering vessels have completed 138 LNG bunkering operations since their commissioning, serving 138 international vessels and bunkering over 770,000 m3 of LNG.

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China: CNOOC achieves over 200,000 m3 of bonded LNG bunkering volume in 2026 so far

CNOOC Gas and Power Group on Thursday (4 June) said its bonded LNG bunkering volume has exceeded 200,000 cubic metres (m³) so far this year.

CNOOC’s two LNG bunkering vessels have completed 138 LNG bunkering operations since their commissioning, serving 138 international vessels and bunkering over 770,000 m³ of LNG.

The company has the world’s largest LNG bunkering and transport vessel, Hai Yang Shi You 301, and China’s first LNG transport and bunkering vessel capable of operating in both river and sea all year round, Hai Yang Shi You 302

The firm added that it has achieved milestones in both terminal bunkering and anchorage bunkering modes.

CNOOC Gas and Power Group said bonded LNG bunkering at anchorages offers better compatibility with international shipping schedules and enables on-demand bunkering, offering significant advantages in terms of space allocation, cost control, resource utilisation, and operational efficiency.

On 20 May, the Hai Yang Shi You 301 successfully refuelled two international vessels with LNG at the South Cheung Chau Anchorage in Hong Kong, marking a new stage in Hong Kong’s LNG bunkering operations.

CNOOC said it is continuing to expand its LNG bunkering operations, building an LNG bunkering network in ports including Shenzhen, Ningbo, Guangzhou, Hong Kong, Xiamen and other places.

 

Photo credit: CNOOC Gas and Power Group
Published: 8 June, 2026

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Alternative Fuels

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

Bunker procurement firm entered into a strategic knowledge partnership with LR Advisory, focused on low-carbon fuels, FuelEU Maritime, EU ETS and IMO decarbonisation measures.

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

Seascale Energy, a bunker procurement joint venture of Cargill’s Pure Marine Fuels and Hafnia’s Bunker Alliance, on Thursday (4 June) said it is continuing to strengthen its decarbonisation capabilities in response to the rapidly evolving fuel and regulatory landscape shaping global shipping.

Since its launch in May 2025, Seascale has facilitated several fuel transactions involving LNG, biofuels across various blends and green methanol demonstrating its ability to support customers beyond conventional bunker procurement, and also with emerging low- and zero-carbon fuel solutions.

To further reinforce this expertise, Seascale has entered into a strategic knowledge partnership with Lloyd’s Register Advisory (LR Advisory), focused on low-carbon fuels, FuelEU Maritime, EU ETS, IMO decarbonisation measures and the practical commercial implications of the energy transition.

As part of the first phase of the collaboration, LR Advisory recently delivered two dedicated training workshops for global Seascale teams across in both Europe and Asia, bringing together commercial and operational colleagues in both Geneva and Singapore.

The sessions focused on the evolving regulatory framework, biofuels as marine fuels, FuelEU pooling strategies, chain-of-custody requirements, emissions accounting and future fuel readiness.

The workshops also explored the realities of sourcing and managing alternative fuels, including compliance documentation, lifecycle emissions reporting and commercial risk considerations associated with biofuel adoption and emerging fuel markets. Particular attention was given to the growing importance of FuelEU Maritime and EU ETS in shaping procurement strategies and voyage economics.

The collaboration forms part of Seascale’s broader ambition to provide its members with credible, technically grounded guidance as maritime faces increasingly complex environmental regulations and fuel pathways.

Looking ahead, Seascale and Lloyd’s Register Advisory are exploring opportunities to extend elements of this knowledge-sharing initiative externally through dedicated client webinars and market-focused sessions. The objective is to help customers better understand the operational, commercial and regulatory implications of the maritime energy transition while supporting informed fuel procurement and compliance strategies.

Separately, Seascale Energy and Lloyd’s Register are also collaborating on the Bunkering Services Initiative (BSI), a technology-enabled, independently audited framework that promotes transparency in the Amsterdam-Rotterdam-Antwerp (ARA) region.

Related: Singapore-based Hafnia and Cargill launch bunker procurement JV Seascale Energy
Related: Seascale Energy procures green methanol bunker fuel for bulker “Brave Pioneer”

 

Photo credit: Seascale Energy
Published: 8 June, 2026

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LNG Bunkering

Chinese firms form pact for 20,000 cbm LNG bunkering vessel project

CM Energy Tech, Seacon Shipping Group and China Merchants Heavy Industry (Jiangsu) signed a joint venture agreement for 1+1 20,000 cubic meter LNG bunkering vessels.

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CM Energy Tech Co Ltd, Seacon Shipping Group Holdings Limited and China Merchants Heavy Industry (Jiangsu) Co Ltd on Tuesday (26 May) signed a joint venture agreement for the construction of 1+1 20,000 cubic meter liquefied natural gas (LNG) bunkering vessels. 

The parties also signed a shipbuilding contract for the first vessel, which will be constructed by China Merchants Heavy Industry.

The project combines CM Energy Tech’s access to the China Merchants Group ecosystem, Seacon Shipping Group’s expertise in ship management and operations, and China Merchants Heavy Industry’s shipbuilding capabilities. The partners said the initiative is intended to address the shortage of large-capacity LNG bunkering vessels in the Chinese market.

The newbuild LNG bunkering vessel will feature dual C-type independent cargo tanks and is designed with a boil-off rate of just 0.16% per day. It will also be capable of delivering LNG at a bunkering rate of up to 2,000 cbm per hour, enabling efficient refuelling of large LNG-fuelled vessels.

The vessel will be powered by Wärtsilä dual-fuel engines and will comply with IMO Tier III emissions requirements. The first vessel is scheduled for delivery in 2028.

The three companies said they plan to further expand cooperation across the LNG value chain, strengthen their presence in the marine energy sector and provide customers with integrated LNG bunkering services focused on safety, operational efficiency and lower carbon emissions.

 

Photo credit: David Yu from Pixabay
Published: 5 June, 2026

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