The UK Emissions Trading Scheme (UK-ETS) will be expanded to include the shipping sector, starting on 1 July 2026. As a result, regardless of the Flag state, ships of 5,000 gross tonnage and above calling at ports under UK jurisdiction will be required to surrender allowances corresponding to their annual greenhouse gas (GHG) emissions.
The UK Government has recently issued the Main Authority Response outlining the key policy decisions, which was further explained during a government-hosted webinar on 8 December. The formal regulations reflecting these decisions are expected to be published in due course.

The following is a summary of the UK-ETS for the shipping sector based on current information.

1.　Scope of application
(1)　Applies to ships of 5,000 gross tonnage and above, calling at ports under UK jurisdiction (hereinafter UK ports*1), regardless of the Flag state
(2)　The scope of GHG is carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O)
(3)　The emissions in scope are as follows (see Figure 1 and Table 1):
(i)　100% of GHG emissions from voyages (at sea) between UK ports, including voyages that start and end at the same port under UK jurisdiction
(ii)　Notwithstanding the above, 50% of GHG emissions from voyages (at sea) between ports in Great Britain and Northern Ireland
(iii)　100% of GHG emissions berthing in UK ports (in port)
(Even for voyages departing from or arriving at ports outside the UK, GHG emissions in UK ports (in port) are within the scope of the UK-ETS)
(4)　The following emissions are out of scope (see Figure 1 and Table 1):
(i)　Emissions from voyages (at sea) between UK ports and ports in UK Overseas Territories (OTs) (e.g. Gibraltar, Falkland Islands) or Crown Dependencies (CDs) (e.g. Isle of Man, Jersey). (Emissions in ports in OTs and CDs are also out of scope, but emissions in UK ports are in scope (above (3)(iii))
(ii)　Emissions from voyages (at sea) between ports in OTs or CDs, and voyages between those ports and ports outside the UK (Emissions in ports in OTs and CDs are also out of scope)

*1 Ports under UK jurisdiction except for ports in UK Overseas Territories and Crown Dependencies

(To be continued)