July Newsletter Edition “UK ETS. From Compliance to Operational Planning.

UK ETS: From Compliance to Operational Planning

The expansion of the UK Emissions Trading Scheme (UK ETS) marks another significant milestone in the decarbonisation of maritime transport. While the regulation introduces new reporting and emissions obligations, its influence extends well beyond compliance.

This edition explores what changes, when they happen and how ship operators can prepare.

Scope and Coverage

• Ships ≥ 5,000 Gross Tonnage (GT)
• Domestic voyages between UK ports
• Emissions while at berth in UK ports
• Emissions while in designated UK port anchorage awaiting berth
• Covered greenhouse gases: CO₂, CH₄ (Methane), N₂O (Nitrous Oxide)
• 1 UK Allowance (UKA) = tonne of verified CO₂e emitted

Implementation Timeline

Key Objectives

 1 July 2026 UK ETS starts for domestic maritime

 31 March 2027 First verified Annual Emissions Report (AER)

 1 January 2027 Offshore vessels enter the scheme

 31 March 2028 Submit 2027 verified emissions report

 30 April 2028 First surrender of UK Allowances (for 2026 & 2027 emissions)

 From 2029 onwards Annual surrender by 30 April following each reporting year

 Review planned in 2028 to assess:o Lowering the threshold below 5,000 GTo Possible expansion of the scheme to international voyages: 50% of emissionson voyages between a UK port and any foreign port (EU or non-EU)

Compliance Workflow

Voyage –>Fuel Monitoring–>Emission Calculation–>Verification–>Allowance Surrender

Operational Responsibilities

Shipping companies are obliged to:

Monitor fuel consumption for every voyage.Calculate CO₂, CH₄ and N₂O emissions.Prepare an Annual Emissions Report.Have the report independently verified by a UKAS-accredited verifier before submission.Failure to surrender sufficient allowances results in financial penalties in addition to theobligation to surrender the missing allowancesThe UK government decided not to adopt a gradual phase-in like the EU ETS. Instead,when the UK ETS begins for maritime on 1 July 2026, operators will ultimately be liablefor 100% of emissions within the scope of the scheme.

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