The UK government has proposed a number of actions to extend its Emission Trading Scheme (ETS) in the coming years, including the insertion of domestic maritime transport for the first time.
The introduction of domestic maritime transport is in line with commitments to bring other high-emitting sectors in the UK ETS and aims to encourage corporations in those sectors to cut their emissions and invest in cleaner alternatives.
The scheme will be applicable to large maritime vessels only of 5,000 gross tonnage and over.
READ: EU includes shipping in carbon trading scheme to curb emissions
These modifications are being implemented to allow operators time to prepare and to ensure that affected firms have a seamless transition.
The ETS is expected to be expanded to include domestic maritime transport in 2026, as well as waste incineration and waste from energy industries in 2028.
This will be subject to additional consultation on implementation specifics and an initial reporting period for waste sectors.
In August 2022, the UK Government launched a new maritime strategy with a focus on enhanced seabed mapping and tackling security threats.
One month later, the UK government announced that £60 million ($65 million) of funding will go to the UK maritime industry to reduce emissions.
