28
Nov 25

Further calls for clarity on UK ETS expansion

This week the UK ETS Authority published its main Authority Response on the expansion of the UK ETS to maritime, alongside a further consultation on the ‘Scope Expansion to International Maritime Voyages’, with a deadline of 20 January 2025.

The Authority’s response provides further details on the scope and timing of the measures, complementing its Interim response issued in July 2025. As well as reiterating the inclusion of "all in-port emissions" in the UK and the anticipated start date of 1 July 2026, it confirms that the deadline for both the surrender of allowances for the first scheme year (from 1 July 2026 to 31 December 2026) and second scheme year (2027) will be 30 April 2028. Offshore vessels will see a delayed entry into force until January 2027 to align with the EU ETS's expansion to those vessels. The response also confirms that ferry services to Scottish islands have been exempted—a decision that will be reviewed in 2028—but exemptions do not apply to other UK routes. Measures have also been outlined to avoid distortion on Irish Sea routes.

The UK ETS Authority will be hosting an overview webinar to outline the decisions in the main Authority Response. This will be held on Monday 8 December at 1400. Sign up to attend here.

While these clarifications are welcome, significant issues remain unresolved, including enforcement arrangements, detailed guidance, IT systems, and operational planning. The Chamber has consistently called for an exemption for all UK lifeline ferry services, and we continue to press this point with Government. In our most recent submission to DESNZ, DfT, HM Treasury, and the Environment Agency, we reiterated industry concerns over the lack of clarity in current proposals and the risks this poses for operators and communities.

The new consultation seeks views on the proposed expansion of the scheme's scope to international voyages' emissions. It is also seeking views on adjustments to the UK ETS cap resulting from this proposed expansion, future review of the scheme in light of global measures developed at the International Maritime Organization (IMO) and the potential impacts of the proposed scheme.

We are working with members and international partners to develop a response to the consultation and raising our concerns with Government.

You can find details of the Chamber’s proposed response here, and we would welcome input from all members in order to enhance the industry position. As the news broke earlier this week, we provided an initial update to our members which is available here. 

Please contact Francesco and Katrina to discuss this further.