UK ETS now applies to maritime: what you need to know

What is the UK ETS?

The UK Emissions Trading Scheme (ETS) aims to incentivize certain sectors, including maritime, aviation, power and heavy industry, to decarbonize by setting a cap on emissions from those sectors and creating a carbon price. Companies are required to surrender allowances equivalent to their emissions. They can purchase these allowances via state auctions or on the secondary market. The UK ETS will create a cost-effective path to net zero for the sectors covered under the scheme.

How does the UK ETS apply to the maritime industry?

The scope of the UK ETS is being expanded to include maritime as of July 1, 2026. Offshore vessels have been granted a six-month transition window, with compliance becoming mandatory on January 1, 2027.

The UK ETS framework applies to any commercial shipping company operating cargo and passenger vessels of 5,000 GT and above that meet the following operational conditions:

• Ships undertaking a voyage between two UK ports
  • This excludes journeys to or from Crown Dependencies and British Overseas Territories
• In-port operations
  • Any qualifying vessel undertaking commercial activities within a UK port of call, irrespective of whether the preceding or subsequent part of the voyage is domestic or international

Regulated entities must purchase and surrender UK emissions allowances (UKA) equivalent to their verified annual greenhouse gas emissions. In addition to carbon dioxide, methane and nitrous oxide emissions must also be counted and converted into carbon dioxide equivalents.

Routes between ports in Great Britain and routes that go between ports in Great Britain and Northern Irelands have different emissions requirements. The below infographic provides more information.

What steps do vessel managers need to take to ensure compliance with the UK ETS?

There are five key steps that shipowners and operators should take to ensure compliance with the UK ETS:

• Assign legal responsibility
  • The registered owner is held legally accountable for UK ETS compliance by default.
  • Responsibilities can be delegated to an international safety management (ISM) company. This requires a formal, signed written agreement executed by both parties, which must be submitted to and accepted by the national regulator.
• Activate your digital management account
  • All operators must open a centralized digital account via the Manage Your UK ETS (METS) system.
  • The UK Environment Agency currently supports early onboarding for the METS platform prior to July 1, 2026. Early onboarding allows companies to secure preliminary approval for their compliance pathways before the UK ETS enters into force for the maritime industry.
• Create an emissions monitoring plan (EMP)
  • The EMP differs from EU ETS and FuelEU Maritime requirements in that it must be compiled strictly at a company level. Maintaining standalone plans for individual ships is no longer required.
  • Assigned national regulators hold sole authority over the approval of the monitoring plans. Third-party verifiers are completely independent of this specific phase and are not involved in the approval of the EMP.
• Monitor and report
  • The company must start monitoring voyages that fall under the UK ETS scheme. It must monitor the following for each applicable voyage:
    • port of departure
    • date and hour of departure
    • port of arrival
    • date and hour of arrival
    • total amount of each type of fuel consumed at sea and in port
    • emission factor for each type of fuel consumed
    • amount of each greenhouse gas emitted
• Verify annual emission reports
  • The company should submit the collected data to an accredited verifier for verification.
  • The collected data will be submitted on METS once the platform is launched. 

What is the timeline for full UK ETS implementation?

How do shipowners and vessel managers know who their UK ETS regulator is?

Administrative oversight is divided among four distinct regional regulators based on the vessel operator’s corporate registration address. See the infographic below for more information.

The regulators can be contacted via the following email addresses