The United Kingdom is moving ahead with plans to implement its own Emissions Trading Scheme (UK ETS) from 1 July 2026, which follows January’s transition of the EU ETS into its full compliance phase.
The Emissions Trading Scheme is a market-based tool designed to curb greenhouse gas (GHG) emissions in support of the UK’s 2030 climate objectives. Within the global logistics and shipping industry, the scheme assigns a financial cost to emissions produced by vessels. Shipping lines will be required to pay for these emissions through the purchase of allowances, effectively creating a financial incentive to reduce their carbon footprint. The long-term goal is to accelerate investment in more energy-efficient ships and the adoption of cleaner, low-emission fuels.
Under the UK ETS framework, the scheme will apply to vessels of 5,000 gross tonnage and above. Emissions from domestic voyages between UK ports will be covered at 100%, while international voyages, including services to the EU and Northern Ireland, will be subject to 50% coverage. The scope of the scheme includes carbon dioxide (CO₂), methane (CH₄), and nitrous oxide (N₂O). Certain non-commercial vessels will remain exempt, including government-owned ships for defence and emergency services.
In line with similar measures already implemented across Europe, businesses involved in importing and exporting goods should expect the introduction of ETS-related surcharges on ocean and road freight movements operating through UK ports from July 2026.
Further details on the UK Emissions Trading Scheme can be found on the UK government’s website HERE. MultiFreight will continue to closely monitor developments and provide any necessary updates as the implementation date approaches.
