The maritime industry is entering a new era of environmental accountability. From 1 July 2026, the UK ETS (United Kingdom Emissions Trading Scheme) will expand to include domestic maritime transport.
For shipowners, managers, and operators, understanding these regulations is no longer optional—it is a legal necessity. This article breaks down everything you need to know about the scope, deadlines, and compliance requirements of the UK ETS.
What is the UK ETS for Maritime?
The UK ETS is a “cap and trade” system designed to reduce greenhouse gas emissions. By placing a limit on the total amount of emissions allowed, the scheme encourages companies to become more carbon-efficient.
Starting in mid-2026, the scheme will cover ships of 5,000 GT and above operating on domestic UK routes and in UK ports. Unlike some other regulations, the UK ETS tracks more than just carbon; it includes:
- Carbon Dioxide ($CO_2$)
- Methane ($CH_4$)
- Nitrous Oxide ($N_2O$)
Read more about the EU ETS in Maritime-Hub.
Applicability: Is Your Ship in Scope?
The UK ETS applies to companies operating cargo or passenger ships that perform the following activities:
- Voyages between two UK ports: This excludes Crown Dependencies and British Overseas Territories.
- In-port activities: This includes “hoteling” (vessels at berth), cargo operations, and all movements within a UK port, regardless of where the ship came from or is going next.
Key Exemptions
Certain vessels are exempt from the scheme, including fishing vessels, search-and-rescue vessels, naval ships, and primitive wooden ships. Notably, offshore vessels are only exempt until 31 December 2026.
Critical Deadlines and Reporting
Compliance with the UK ETS follows a strict calendar. To help the industry adjust, the UK government has introduced a “double surrender” window for the initial phase.
| Requirement | Deadline | Notes |
| EMP Approval | Within 42 days of first activity | Must be applied for via the METS system. |
| 2026 Verified Report | 30 March 2027 | Covers 1 July to 31 December 2026. |
| 2027 Verified Report | 31 March 2028 | Covers the full 2027 calendar year. |
| Double Allowance Surrender | 30 April 2028 | A one-off deadline for both 2026 and 2027 allowances. |
Regulated Entities and Regulators
By default, the registered owner is the entity responsible for UK ETS compliance. However, this responsibility can be delegated to the ISM company through a written agreement, provided the regulator accepts the evidence.
The specific regulator you deal with depends on where your company is based:
- England & Non-UK Operators: Environment Agency (EA)
- Wales: Natural Resources Wales (NRW)
- Scotland: Scottish Environment Protection Agency (SEPA)
- Northern Ireland: DAERA
These bodies are responsible for approving your Emissions Monitoring Plan (EMP) and enforcing penalties for non-compliance.
How to Prepare for Compliance
1. Emissions Monitoring Plan (EMP)
Every operator must have an approved EMP. Unlike ship-specific certificates, the EMP is compiled at the company level. You must apply for this through the Manage Your UK Emissions Trading Scheme (METS) platform.
Pro Tip: The Environment Agency is currently supporting early onboarding. Getting your EMP approved before 1 July 2026 is currently free and highly recommended to avoid the last-minute rush.
2. Purchase Allowances
Regulated companies must surrender allowances equivalent to:
- 100% of emissions from UK domestic voyages and port activities.
- 50% of emissions from voyages between Northern Ireland and Great Britain.
3. Avoid Penalties
Failure to comply can lead to significant civil penalties. Furthermore, regulators will publicly name non-compliant operators, which can lead to reputational damage in a “green-conscious” market.
Next Steps
The shift to the UK ETS requires a robust data collection strategy. Shipowners should begin auditing their current monitoring capabilities to ensure they can track $CO_2$, $CH_4$, and $N_2O$ accurately by July 2026.
