Synopsis
This order will expand the UK Emissions Trading Scheme (UK ETS) to include emissions from qualifying domestic maritime activities.
These requirements will apply to qualifying ships of 5,000 GT or greater and will exclude voyages with a port of call outside the UK.
Summary
The draft Greenhouse Gas Emissions Trading Scheme (Amendment) (Extension to Maritime Activities) Order 2026 are expected to amend the Gas Emissions Trading Scheme Order 2020 on 1 July 2026.
This legislation will apply across the UK.
What will change?
The amending order will expand the UK Emissions Trading Scheme (UK ETS) to include emissions from qualifying domestic maritime activities from 1 July 2026.
Obligated maritime operators
‘Operators’ of ships of 5,000 gross tonnage (GT) or greater will be obligated under the UK ETS, unless exempt or only undertaking excluded activities.
The expansion of the UK ETS will initially exclude voyages with a port of call outside the UK, although international maritime activities may be captured in the future.
‘Operators’ of ships under the UK ETS are defined as the owner or the ship’s ISM company under the International Safety Management (ISM) Code. Operators are required to participate in the UK ETS from 1 July 2026. This includes monitoring, reporting and surrendering allowances in respect of CO, CH₄ and NO emissions arising from qualifying maritime activities.
Obligated activities
Allowances must be obtained and surrendered equal to monitored emissions from the following in the prior scheme year:
Maritime operators will be assigned to a UK ETS regulator based on the location of their registered office or place of residence.
Excluded activities
Voyages arriving at a port of call outside the UK’s jurisdiction are excluded from UK ETS obligations under the maritime sector.
Excluded activities include:
Excluded ships
Ships excluded from the UK ETS include:
Offshore ships are excluded from the UK ETS until 1 January 2027.
Emissions monitoring plans
Maritime operators must apply to the regulator for an emissions monitoring plan. This plan will document processes to monitor greenhouse gas emissions from their ship(s).
Applications for the emissions monitoring plan must be submitted to the regulator within 42 days of the first day the operator performs an eligible maritime activity under this legislation. This application may be submitted to the regulator in advance of the order coming into force on 1 July 2026.
Each maritime operator must have an emissions monitoring plan covering all ships for which it is responsible. Operators must apply to the regulator to vary the emissions monitoring plan when required.
Part 3 and Part 4 to Schedule 1 state the mandatory contents of emissions monitoring plans and monitoring arrangements that must be followed, respectively.
Part 6 to Schedule 1 states formulas that must be used by maritime operators to calculate emissions. Default emissions factors are stated in Table C2 within Schedule 1. Where default emissions factors for non-fossil fuels are not listed in Table C2, emissions factors must be calculated through sampling and analysis in accordance with Part 9 to Schedule 1.
Annual Emissions report
Maritime operators must report qualifying emissions through annual emissions reports. Annual emissions reports must be verified by an impartial, accredited verifier and submitted to the regulator on or before 31 March following each scheme year.
Each operator must submit a single annual emissions report covering all ships for which it is responsible. The annual emissions report follows the same coverage principles as the emissions monitoring plan.
Allowances
Maritime operators must surrender, on or before 30 April of the following year, a number of allowances equal to their maritime emissions for that scheme year, expressed in tonnes of carbon dioxide equivalent.
Additionally, the first allowance surrenders will be due by 30 April 2028, concerning emissions in the 2026 partial scheme year and 2027 scheme year.
GUIDANCE
Greenspace subscribers receive full monthly updates summarising new and forthcoming legislation applicable to their organisation.
To receive these free updates by email, please subscribe to our mailing list. For a free trial and demonstration of Greenspace or a quotation, please contact us by email.
