UK ETS now covers shipping: what owners and operators need to know
Since 1 July 2026, shipping has been part of the UK Emissions Trading Scheme. For now the scope is domestic, but the direction is clear: international voyages follow from 2028. Here is what is in scope today, the key dates, and what owners and operators should have in place.
Who and what is covered
Ships: cargo and passenger ships of 5,000 GT and above. Offshore ships join from 1 January 2027.
Voyages: domestic voyages between UK ports, including voyages that start and end at the same UK port, with 100% of emissions covered. Voyages between Northern Ireland and Great Britain carry a 50% surrender obligation.
Port stays: 100% of emissions while ships are in UK ports, at berth and during port movements.
Gases: CO₂, methane (CH₄) and nitrous oxide (N₂O), accounted for on a tank-to-wake basis.
Exemptions: fishing vessels, certain island ferry services and government non-commercial activity, such as naval and coastguard vessels.
Who is responsible
The obligation sits with the registered owner, who can transfer it to the ISM company through a written agreement. The regulator depends on where the responsible company is based: the Environment Agency for England and for companies outside the UK, SEPA for Scotland, Natural Resources Wales and the Northern Ireland Environment Agency.
The UK MRV regulation was revoked on 3 April 2026, so monitoring and reporting for UK voyages now run under the UK ETS itself.
Key dates
Milestone | Date |
UK ETS starts for maritime | 1 July 2026 |
First scheme year | 1 July – 31 December 2026 |
Emissions Monitoring Plan approval | Apply within 42 days of the first in-scope activity |
Annual Emissions Report (verified by a UKAS-accredited verifier) | 31 March each year |
Surrender of allowances for 2026 and 2027 | 30 April 2028 |
Offshore ships brought in | 1 January 2027 |
International voyages brought in | From 2028 (details being finalised) |
The first scheme year is short, covering only the second half of 2026, and allowances for both 2026 and 2027 are surrendered together by 30 April 2028.
What comes next
The UK has confirmed that international voyages between UK and non-UK ports will be brought into the scheme from 2028. Under the proposals consulted on over the winter, operators would monitor and report all emissions on these voyages but surrender allowances for 50% of them, an approach that mirrors the EU ETS. A 2028 review will also look at lowering the size threshold, potentially to 400 GT.
Same principle as the EU ETS, separate scheme: its own registry, verifiers, deadlines and allowances.
What this means for your fleet
Map your exposure. Identify which ships call at UK ports, how much time they spend there, and whether any trade domestically between UK ports.
Settle responsibility. Confirm whether the owner or the ISM manager holds the obligation, and reflect it in management agreements and charter parties, including how allowance costs are passed on.
Get the paperwork in place. Emissions Monitoring Plan approval, a UK Emissions Trading Registry account and a UKAS-accredited verifier.
Prepare for 2028. International voyages will widen the scope considerably. Monitoring set up correctly now will carry over.
How we support it
For fleets already reporting under EU MRV, EU ETS and FuelEU Maritime, the UK ETS adds another set of obligations to the same underlying data. At enisolv, UK voyages and port stays run through the same validated daily reporting we use for EU and IMO frameworks, so emissions figures are consistent across schemes and ready for verification.
Sources: DNV · ABS · Clyde & Co. This article is for general information and does not constitute legal advice.
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