The UK government is considering including the shipping sector in its Emissions Trading System (ETS) from 2026. This move aims to further reduce carbon emissions and align with the country’s climate change goals. Currently, the UK ETS covers sectors like power generation, manufacturing, and aviation, reports Reuters.
Gradually Decreasing Cap
Under the ETS, the government sets a gradually decreasing cap on the amount of emissions that a sector, or group of sectors, can produce. It creates carbon permits for those emissions and companies must buy one for each tonne of carbon dioxide (CO2) they emit.
“Expanding the scheme to include the maritime sector… will ensure that the price of fuels used by the sector better reflects their environmental impacts,” the UK Emissions Trading Scheme Authority said in a statement.
Benchmark UK carbon permits currently trade around 36.60 pounds ($46.44) per metric ton of CO2.
The move would follow Europe, which began phasing the shipping industry into its ETS from the beginning of 2024.
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Source: Reuters
