As of 1 July, the UK Emissions Trading Scheme (UK ETS) has expanded to include the maritime sector, bringing new compliance obligations to vessel operators. Following a 2024 consultation and 2025 interim response, the scheme now covers cargo and passenger vessels of 5,000GT and above, with offshore vessels to be included from 1 January 2027. Emissions generated during domestic UK voyages and while vessels are in UK ports will also fall within scope.
For affected businesses, this expansion means additional reporting requirements and potentially higher costs as emissions become subject to the UK’s cap-and-trade systems. Vessels completing domestic journeys within the UK – trips that start and finish at a port within the UK – must comply with the scheme. This includes calculating and costing emissions of CO2 (carbon dioxide), CH4 (methane), and N2O (nitrous oxide).
To support the transition, the first surrender deadline for the maritime sector will be on 30 April 2028 and include both 2026 and 2027 reporting years. Businesses must report to two new entities for compliance: the Manage your Emissions Trading Scheme (METS) and the UK Emissions Registry.
For each individual country within the UK, there will be separate regulators based on the operator’s address:
- England – Environment Agency
- Wales – Natural Resources Wales (NRW)
- Scotland – Scottish Environment Protection Agency (SEPA)
- Northern Ireland – Northern Ireland Environment Agency (NIEA)
- Operators located outside the UK – Environment Agency
Will the UK ETS eventually link with the EU ETS?
While there isn’t yet any official confirmation of when two schemes will link, the EU and UK agreed in May 2025 that they will be linking their Emission Trading Schemes. Certain aspects of the current UK ETS already align with the EU’s ETS, such as the inclusion of CO2, N2O, and CH4 in reporting. The 2025 interim response also clarified that “the UK and EU should work towards establishing a link between carbon markets.”
While this doesn’t indicate any immediate action as required from the maritime industry, it’s clear that reducing emissions should be a business priority as the UK ETS will continue to tighten restrictions on its cap-and-trade allowances.
What happens next?
With the application of the UK ETS Maritime sector already under way, it’s vital that your organisation has access to METS, as this will be the key platform where all UK ETS submissions and approvals are accessed. Reporting and verification internally will also ensure a smooth transition throughout the first implementation of the scheme.
If you’re not sure where to start, or are seeking further advice on this addition to the UK ETS, get in touch with our experts at Sustainable Energy First for a no-obligations chat.