The UK Emissions Trading Scheme (UK ETS) now covers domestic shipping, taking effect on 1 July 2026. Vessels over 5,000 gross tonnes operating between UK ports must report carbon dioxide, methane, and nitrous oxide emissions. International routes will be included from January 2028 with 50% emissions coverage. Shipowners must report annually by March 31 and surrender allowances by April 30, 2028 for the first two reporting periods. The UK Chamber of Shipping has raised concerns about the policy, noting the sector cannot deliver meaningful emissions reduction without the necessary fuels, infrastructure, and clear guidance. The UK plans to dynamically align its ETS with the EU ETS, with ongoing negotiations for a formal agreement. The Environment Agency has published technical guidance for compliance, and vessel owners can delegate responsibility to ISM companies through written agreements.
