The UK Emissions Trading Scheme (UK ETS) Authority has published its final policy decisions on how domestic maritime transport will enter the national carbon-pricing system. The document explains which vessels are covered, how operators must report emissions, and what transitional measures will apply as the sector joins the UK ETS.
From 1 July 2026, all ships of 5,000 GT and above will fall under the scheme for domestic voyages and in-port emissions. This includes most large ferries, although essential island and peninsula services in Scotland will be temporarily exempt because of their vital social function. Voyages between Great Britain and Northern Ireland will receive a 50% deduction, preventing price disparities on cross-Irish Sea ferry routes.
The UK ETS Authority also confirms its intention to extend the system to international voyages from 2028, subject to consultation and alignment with the EU ETS. This could eventually bring major ferry corridors such as the UK–France, UK–Ireland, and UK–Benelux routes into the scheme.
Operators will benefit from a two-year transitional “double-surrender” period (*), giving extra time for reporting and compliance. The ETS cap will rise by 9.32 million allowances to accommodate maritime emissions, strengthening long-term incentives for cleaner vessels, alternative fuels and operational efficiencies.
(*) Double-surrender explained
- Maritime enters the UK ETS on 1 July 2026.
- Instead of requiring surrender by April 2027, the UK will delay the first surrender deadline by one year.
- Operators will surrender allowances for both 2026 and 2027 at the same time.
Source: UK Government