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UK Maritime Carbon Rules to Take Effect July 1

[ May 28, 2026   //   ]

The United Kingdom will expand its Emissions Trading Scheme to domestic maritime shipping from July 1, bringing cargo and passenger vessels of 5,000 gross tons and above into the country’s carbon-pricing regime and prompting carriers to introduce new customer surcharges tied to compliance costs.

Under the expanded UK ETS, operators will be required to monitor, report and surrender carbon allowances covering all greenhouse gas emissions generated on domestic UK voyages and while vessels are berthed in UK ports. The rules will apply to carbon dioxide, methane and nitrous oxide emissions from the outset, according to the UK government’s final authority response on the maritime expansion.

The move marks a significant extension of the UK’s post-Brexit carbon market into the shipping sector as London seeks to align maritime decarbonization measures more closely with broader net-zero goals and evolving European emissions policy.

The UK government said the maritime expansion will begin without the phased implementation approach used under the European Union’s ETS. The initial reporting period will run from July 1 through Dec. 31, with verified emissions reports due by March 31, 2027, and allowance surrender deadlines set for April 30. A one-time “double surrender” provision will allow operators to settle both 2026 and 2027 obligations by April 30, 2028.

The regulation covers:

• All emissions from domestic UK voyages.

•All emissions generated while ships are at berth or anchored in UK ports.

• Fifty percent of emissions on routes between Great Britain and Northern Ireland, a concession aimed at maintaining competitive parity across Irish Sea routes.

International voyages to and from non-UK ports are excluded, though the UK ETS Authority has opened consultations on potentially including 50 percent of those emissions beginning in 2028 to align more closely with the EU ETS model.

The UK government also confirmed offshore vessels of 5,000 GT and above will enter the scheme from Jan. 1, 2027.

In a customer advisory, shipping line Ocean Network Expess (ONE) said it will incorporate UK ETS-related costs into its existing Emission and Environmental Surcharge structure, with tariffs to be reviewed quarterly using UK Allowance futures prices traded on the Intercontinental Exchange as a benchmark.

The carrier said failure to comply with UK ETS obligations could trigger penalties of £100 per tonne of carbon dioxide equivalent emissions, in addition to the requirement to surrender the missing allowances.

Industry groups have warned the expansion will increase compliance and operating costs for carriers serving UK domestic trades and port calls, while potentially accelerating investment in fuel efficiency, voyage optimization and alternative fuels.

The UK government argues the scheme is intended to ensure maritime fuel costs more accurately reflect environmental impacts and to encourage adoption of lower-carbon technologies and operating practices.

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