Following an industry consultation which closed earlier in the year, the UK government’s interim response to the expansion of the UK ETS to maritime has been published. It states that the intention is for the UK ETS maritime regime to start on 1 July 2026.
The UK government’s interim response to the expansion of the UK ETS to maritime has been published. The response states that it has been published to allow maritime operators to start preparing, as well as to allow regulators to start onboarding activities in preparation for its commencement.
Further clarification is expected in the full response, but some key takeaways from this initial response are:
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The intention is for the UK ETS maritime regime to start on 1 July 2026. The first scheme reporting “year” will run from 1 July 2026 to 31 December 2026 and subsequent reporting years will be on a full calendar year basis.
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The deadline for surrendering of allowances against the verified emissions will be 30 April of the year immediately following the reporting year. As an example, this would mean that for the 1 July 2026 to 31 December 2026 reporting year the deadline to surrender allowances would be 30 April 2027.
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The regime will apply to vessels of 5000 gross tonnage (gt) and above.
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The UK ETS will include all domestic voyages, being voyages from one UK port to another UK port and voyages which start and end at the same port in the UK. All emissions within a voyage will be included, including while at anchor and while moored. In addition, all in port emissions from ships which are travelling domestically, internationally or both will be included.
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The entity responsible for compliance will be the Registered Owner, or the ISM Company where it has properly assumed responsibility by way of a legally binding agreement.
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Government, non-commercial maritime activity is exempted.
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The emissions to be caught are carbon dioxide, methane and nitrous oxide.
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Emissions Monitoring Plans (EMPs) will be required per operator, not per ship, and approval will be required from the regulator, not the verifier.
A copy of the interim response can be accessed here: UK ETS scope expansion: maritime sector – GOV.UK
No date has been given yet for the full UK ETS Authority response, which it is stated will be issued “as soon as possible”. It is hoped that the full response, once issued, will provide clarity in respect of matters such as international voyage emissions, which are intended to be included in due course, and treatment of offshore vessels.
Should Members or Brokers have any questions then please do not hesitate to contact your usual NorthStandard contact, or email the decarbonisation expertise team on nsdecarbonisation@north-standard.com.