The UK has put domestic owners on notice that shipping is to be included in the country’s Emissions Trading Scheme (ETS).
The department for energy security and net zero said on Monday that vessels of more than 5,000 gt will be part of the initiative from 2026.
The scheme was put in place in 2021 to replace the European Union system after Brexit.
If things go to plan, the EU will include shipping in its own ETS from 2024.
Waste incineration and energy from the waste sector will also be added in the UK from 2028.
“This is in line with commitments to bring other high-emitting sectors in the UK ETS and will encourage companies in those sectors to cut their emissions and invest in cleaner alternatives,” the department added.
The UK measure incentivises decarbonisation through a process of buying and selling emissions allowances, which companies must obtain for every tonne of emissions they produce each year.
Firms that are successful in reducing their emissions can sell unused allowances to other companies.
The UK Chamber of Shipping welcomed the move.
‘Significant step forward’
A spokesperson said: “This announcement is a significant step forward in the journey to reach net zero emissions from domestic shipping in the UK, although international agreements remain the best way to deliver lasting change across the sector.”
But the chamber added that the ETS should help — not hinder — the drive towards net zero.
“This means ETS funds raised from domestic shipping must be used to aid the transition to net zero for the sector. This should include supporting the development of zero-emission vessels, fuels and technology and associated port infrastructure,” the spokesperson added.
The UK aims to reduce overall energy demand by 15% by 2030, alongside the wider ambition to move towards greater energy independence.
