The UK government has reaffirmed its commitment to incorporate domestic shipping emissions into its Emissions Trading Scheme (ETS) starting from 2026, aiming to regulate and mitigate maritime carbon footprints.
Key Points
- Consultation Process: The UK ETS Authority will conduct consultations regarding the inclusion of shipping emissions, with a focus on vessels over 5,000 gross tonnage initially, potentially lowering the threshold to 400 GT.
- Methodology: Emissions will be calculated based on fuel volume and carbon intensity, providing a standardized approach to quantifying environmental impact
- Revenue Impact: The inclusion of shipping emissions in the UK ETS is estimated to generate significant revenue, with projections suggesting £310 million ($388 million) over the first three years, starting from 2026.
Implications: This move signifies the UK’s proactive stance towards reducing carbon emissions in the maritime sector, aligning with broader environmental objectives and international climate commitments.
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Source: ENGINE
