UK adds shipping to its emission trading scheme

UK adds shipping to its emission trading scheme — 2023-07-04

Maritime and Ports

The UK has followed the European Union in including shipping in the kingdom’s expanding emission trading scheme (ETS). From 2026 domestic shipping will be included in the UK’s ETS. The scheme will apply to vessels of 5,000 gt and above.

A statement from the government stated on 3 July 2023, “The decisions taken here will not only put us on the path to net zero, but will also support crucial industries on their path to long-term sustainability.

A UK Chamber of Shipping spokesperson said: “This announcement is a significant step forward in the journey to reach net zero emissions from domestic shipping in the UK, although international agreements remain the best way to deliver lasting change across the sector.

The UK Chamber is demanding that funds raised should go towards supporting the development of zero-emission vessels, fuels and technology and associated port infrastructure.” 

In the EU, meanwhile, shipowners will be required to pay for allowances covering 40% of emissions from next year, 70% in 2025, and 100% from 2026.