Domestic UK shipping will be brought into the UK-ETS from July 1, forcing ships of more than 5,000 GT sailing between UK ports to buy UK allowances for 100% of their tank-to-wake CO2, CH4 and N2O emissions, according to UK government guidance.
The move is expected to add 12.3% to the fuel bill for domestic UK shipping, putting the UK alongside jurisdictions that charge shipping for greenhouse gas emissions.
Operators will face their first surrender deadline on April 30, 2028, covering emissions from the 2026 and 2027 reporting years. Annual reporting will be due by March 31 after each reporting year.
The UK-ETS is similar in function to the EU-ETS, with the UK government reviewing the regulation as part of a longer process to align it with the EU system.
The next major step is the planned extension of the UK-ETS to international voyages from 2028. The British government expects that expansion to raise £75m ($99.2m) in 2028, rising to £290m ($383.6m) in 2029.
