UK to include shipping in its emissions trading scheme from

The UK government has announced that the shipping sector will be integrated into the UK Emissions Trading Scheme (UK ETS) starting next year. This initiative is part of a broader strategy aimed at achieving net-zero emissions for shipping operators by 2050. The new maritime plans will encourage vessels to adopt cleaner fuels and utilize shore power, marking a significant step towards a more sustainable maritime industry.

Government’s Commitment to Green Maritime Goals

Maritime Minister Mike Kane emphasized the UK’s dedication to becoming a green energy superpower. He stated that the maritime decarbonisation strategy is essential for creating a cleaner and more resilient maritime sector. The strategy aims to reduce greenhouse gas emissions from larger vessels, including tankers and cruise ships, by imposing higher costs for their emissions. This move is expected to incentivize shipping operators to transition to cleaner technologies and fuels, such as hydrogen, electric, or ammonia-powered vessels.

Rhett Hatcher, CEO of the UK Chamber of Shipping, highlighted the importance of aligning the government’s strategy with the necessary regulatory framework, technology, and infrastructure. He called for a “shore power revolution” to support the green transition, which would benefit both maritime communities and the UK economy. The government also plans to advocate for ambitious measures at the upcoming UN meeting of the International Maritime Organization in April, aiming to address global shipping emissions, which currently account for 2% of total emissions.

Major Investment across the Maritime Sector urged for the UK to become a Global Leader in Decarbonisation

International Context and Future Implementation

The UK’s initiative comes in the wake of the European Union’s Emissions Trading System (EU ETS), which has been extended to cover CO2 emissions from large ships since January 2024. This system mandates that ships of 5,000 gross tonnage and above must comply with emissions regulations when entering EU ports. The EU ETS covers 50% of emissions from voyages starting or ending outside the EU and 100% of emissions occurring between two EU ports.

Shipping companies will be required to surrender their first ETS allowances by the end of September 2025 for emissions reported in 2024. The percentage of emissions that must be covered by allowances will gradually increase each year, starting with 40% for 2025. Meanwhile, Turkey is also advancing its own emissions trading scheme for shipping, which mirrors the EU’s regulations and aims to align with them. This trend reflects a growing global commitment to reducing emissions in the maritime sector, with pilot phases expected to begin this year and full implementation projected from 2027 to 2034.