The United Kingdom extended its emissions trading scheme to domestic shipping on July 1, 2026, bringing cargo and passenger vessels of 5,000 gross tonnage and above into the UK carbon market, according to Splash247.
Scope of the UK ETS Maritime Extension
The UK ETS now applies to voyages between UK ports and to in-port activities at UK ports of call, including cargo operations, hotelling and movements within port, Splash247 reported. Operators must monitor emissions of carbon dioxide, methane and nitrous oxide and surrender UK allowances equivalent to their verified emissions.
Compliance Requirements and Deadlines
Responsibility sits by default with the registered owner, although it can be delegated to the ISM company through a legally binding written agreement covering vessel operation, ISM Code compliance and UK ETS obligations. If no valid delegation is in place, the registered owner remains responsible, according to the source.
Operators must set up a maritime operator account in the UK's Manage your Emissions Trading Scheme reporting service and apply for an emissions monitoring plan within 42 days of their first qualifying UK ETS maritime activity. Annual emissions reports must be independently verified and submitted by March 31 following the scheme year.
| Key Date | Milestone |
|---|---|
| July 1, 2026 | UK ETS extends to domestic shipping |
| Within 42 days of first activity | Deadline to apply for emissions monitoring plan |
| March 31, 2027 | First annual emissions report due (for 2026 scheme year) |
| April 30, 2028 | Deadline to surrender allowances for 2026 and 2027 scheme years |
| January 1, 2027 | Offshore ships compliance becomes mandatory |
The first maritime scheme year runs from July 1 to December 31, 2026, before moving to a calendar-year basis from 2027, Splash247 stated. Allowances for the 2026 and 2027 scheme years must be surrendered by April 30, 2028.
Relationship with EU ETS and IMO Rules
The UK scheme is separate from the EU ETS, meaning qualifying ships may need to comply with both regimes depending on their trading patterns, Splash247 reported. The move adds another layer to shipping's growing carbon compliance burden, forcing operators trading around the UK to align monitoring, verification and allowance procurement with existing EU and IMO requirements.
Implications for Import/Export Professionals
For trade professionals, the inclusion of shipping in the UK ETS introduces a new cost component for sea freight between UK ports and for vessel activities within UK ports. Importers and exporters using domestic shipping routes will face increased compliance costs as operators pass on allowance expenses. The dual compliance with both UK and EU ETS for certain voyages may further complicate trade logistics and pricing.
Offshore ships are excluded until the end of 2026, with compliance becoming mandatory from January 1, 2027, according to the source. This phased approach gives offshore operators additional time to prepare.
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