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T&E welcomes the UK Government’s consultation on expanding the UK Emissions Trading Scheme (UK ETS) to cover emissions from international maritime voyages.
Bringing the UK ETS in line with the EU ETS by including international shipping is a crucial step to ensure the UK takes responsibility for its fair share of global maritime emissions.
With the vote on the International Maritime Organization’s Net Zero Framework now delayed, it is more important than ever for the UK to show leadership and address both domestic and international shipping emissions.
In response to the consultation, T&E UK recommends that the UK Government:
Implement this expansion from 2027, rather than waiting until 2028, following the same lead time of 1 year as for the introduction of the ETS for domestic maritime and port emissions. Every year that the scheme is delayed costs the UK exchequer ~£574 million.
Extend the scope of the ETS to vessels of and above 400 GT, resulting in the ETS covering 99% of maritime emissions instead of 85% under the current proposal, increasing revenues by ~£184 million a year.
The expansion of the UK ETS is necessary, however, the Government should also bring forward regulations that would drive technological changes in the sector, including:
Mandating the rollout and use of onshore power supply infrastructure at major ports in the UK to allow ships to plug into power while docked. Allowing ships to run on clean, home-grown renewables rather than burning fossil fuels at berth.
Mandating the uptake of green hydrogen-based fuels (e-fuels) for the shipping sector to reduce climate emissions and set the sector on a path to decarbonisation. This should include both international and domestic voyages.
Introducing a GHG Intensity Standard for shipping to drive the use of green fuels and the rollout of efficiency measures for both domestic and international shipping.
