Briefings

Inclusion of domestic shipping in the UK Emissions Trading Scheme: Due to apply from 2026?

UK Government authorities have indicated that the UK domestic maritime sector will be included in the UK Emissions Trading Scheme from 2026 onwards. In this article and accompanying factsheet, we summarise the key elements of the current proposals, and highlight remaining areas of uncertainty. 

As we previously reported, in March 2022 the UK Government’s Department of Business, Energy & Industrial Strategy launched a consultation regarding the expansion of the UK Emissions Trading Scheme (the UK ETS) to cover the domestic maritime industry.¹

In early July 2023, the UK Government, the Scottish Government, the Welsh Government and the Department of Agriculture, Environment and Rural Affairs for Northern Ireland (together, the UK Authorities) published a joint response to the consultation, advising that the UK domestic maritime industry will be included from 2026 onwards (the Joint Response).²

We set out in the accompanying factsheet the key features of the inclusion of domestic maritime in the UK ETS as they currently stand.

However, it is apparent that there remain a significant number of details still to be addressed, and further clarity is expected later this year. We will provide updates as and when developments are confirmed, but suggest that you watch this space...

Research undertaken by Octavie Ralet, Trainee Solicitor.

Footnotes:

1. https://www.hfw.com/Inclusion-Of-Domestic-Shipping-In-The-UK-ETS-What-We-Know-So-Far
2. The full Joint Response can be found here: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1166812/uk-emissions-trading-scheme-consultation-government-response.pdf 

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