UK to Add Shipping to Emissions Trading Scheme in 2026

Starting next year, the UK shipping industry will be included in the UK Emissions Trading Scheme (UK ETS), as part of new maritime decarbonisation measures unveiled today. The government’s updated strategy sets out a clear path toward achieving net zero emissions in the maritime sector by 2050, with plans to introduce alternative fuels and expand charging infrastructure for vessels. 

Maritime Minister Mike Kane emphasized the government’s broader ambitions, stating: “We’re committed to making the UK a green energy superpower and our maritime decarbonisation strategy will help us build a cleaner, more resilient maritime nation.” 

Rhett Hatcher, CEO of the UK Chamber of Shipping, welcomed the strategy but highlighted the need for further action: “The government’s strategy must now be matched by delivering the regulatory framework, technology and infrastructure, including a shore power revolution, required to support the green transition for UK maritime, bringing benefits to maritime communities and the UK economy.” 

Under the updated framework, operators of large vessels, including cruise ships and tankers, will be required to pay more for their greenhouse gas emissions. The initiative also includes plans to adopt greener fuels and innovative technologies such as hydrogen, electric propulsion, and ammonia-powered ships. 

The UK government is also aiming to take a leading role on the international stage. In its statement, it said: “With global shipping accounting for 2% of all emissions, the UK will push for high ambitions at the UN’s next meeting of the International Maritime Organization in April, as it develops important measures to reduce emissions from global shipping.” 

The UK’s approach mirrors a growing international trend. Since January 2024, the European Union’s Emissions Trading System (EU ETS) has been expanded to include CO₂ emissions from all vessels of 5,000 gross tons or more calling at EU ports. This applies regardless of the flag state and covers: 

• 50% of emissions on voyages to or from non-EU ports, with the remainder left to the discretion of the non-EU state; 

• 100% of emissions between EU ports and within EU territorial waters. 

The EU system currently applies only to CO₂ but will begin covering methane and nitrous oxide emissions from 2026 onward. 

Shipping companies operating in the EU must surrender their first emissions allowances by the end of September 2025 for emissions recorded in 2024. Initially, 40% of reported emissions must be covered for 2024, increasing annually in subsequent years. 

Turkey is also moving ahead with a similar policy. In 2023, the country introduced a domestic emissions trading scheme modeled after the EU ETS. While the plan still awaits presidential approval, a pilot phase is expected to begin this year, followed by the first full implementation stage from 2027 to 2034. 

These developments highlight a global shift toward carbon accountability in the maritime industry, with more nations tightening regulations to curb shipping-related emissions and accelerate the transition to sustainable transport at sea.