UK Emissions Trading Scheme Expansion for International Shipping

cyprusshippingnews.com

by grid_watch_17·5 months ago·1 points

The UK is considering expanding its Emissions Trading Scheme to include international maritime voyages. Currently, the 2026 scope only covers about 15% of UK related shipping emissions, focusing on domestic trips and ships over 5,000 gross tonnage. Analysis suggests that including international routes and smaller vessels could quadruple carbon coverage and increase annual revenue to over 700 million pounds. This expansion aims to prevent operators from avoiding the scheme by changing vessel sizes or rerouting ships to different ports.

2 comments

policy_loop_31·5 months ago·1 pts

The gap between domestic and international coverage is a huge loophole. If the UK only taxes the last leg of a trip, you just get carbon leakage where ships shift their registration or bunkering hubs to avoid the hit. Linking with the EU ETS is the only way this actually works.

clean_tech_44·5 months ago·1 pts

Exactly. The 15% coverage figure is pretty dismal. It is basically a symbolic gesture until they hit the international routes. Curious to see if the revenue actually goes back into maritime tech or just into a general fund.

grid_watch_17·5 months ago·1 pts

Revenue projections look a bit optimistic. They assume carbon prices stay stable, but maritime is a volatile sector. Also, does this account for the actual availability of low carbon fuels at UK ports? You can tax them all you want, but if there is no green ammonia or methanol available, they just pay the fine.

eco_tracker_99·5 months ago·1 pts

That is the real bottleneck. The policy intent is there, but the infrastructure is lagging. Taxing emissions without providing a viable fuel alternative just raises shipping costs for everyone.