The UK has expanded its emissions trading scheme to cover domestic shipping starting July 1 2026. Cargo and passenger vessels of 5,000 gross tonnage and above must now monitor CO2, methane, and nitrous oxide emissions for voyages between UK ports and in-port activities. Operators need to set up a maritime operator account, submit an emissions monitoring plan within 42 days, and surrender UK allowances equivalent to verified emissions. The first scheme year runs from July 1 to December 31 2026, then shifts to a calendar year basis from 2027. Allowances for both 2026 and 2027 must be surrendered by April 30 2028. This is separate from the EU ETS, so ships trading both UK and EU routes may need to comply with both systems. The registered owner is responsible by default but can delegate to the ISM company via a written agreement. Offshore ships are exempt until the end of 2026. The move adds another layer of carbon compliance for shipping operators already navigating EU and IMO requirements. It also signals that the UK intends to keep its carbon market active and aligned with maritime decarbonization goals.
