UK ETS – Emissions Trading System

What are the requirements for UK ETS compliance?

From 1 July 2026, operators within scope are required to monitor emissions, submit verified emissions data and surrender allowances under the UK ETS. Unlike the EU ETS, the UK ETS does not require a Document of Compliance (DoC) to be carried on board. All compliance processes are managed digitally through METS (Manage your Emissions Trading Scheme) and the UK ETS Trading Registry.

The scope of UK ETS compliance

UK ETS compliance obligations apply at the company level and cover emissions from all ships under an operator’s responsibility that fall within scope of the scheme. Operators must monitor emissions at the ship level in accordance with an approved Emissions Monitoring Plan (EMP) and aggregate these emissions into a single Annual Emissions Report (AER) for the company. Emissions data must be independently verified by a UKAS-accredited verifier, before submission.

UK ETS annual compliance cycle in a nutshell

Compliance follows a recurring annual cycle. Each operator must establish and maintain one EMP at the company level, describing the monitoring methodology, vessels under responsibility and emission sources. The EMP must be verified and approved by the assigned regulator.

During the scheme year, emissions are monitored at the ship level in line with the approved EMP. Following the end of the reporting period, the operator submits a verified Annual Emissions Report (AER) by 31 March. Based on the verified emissions, the operator must then surrender the corresponding number of allowances by 30 April. For the first shipping scheme year (1 July to 31 December 2026), reporting and surrender will take place in 2028.

The regulator is assigned based on the operator’s registered address, in line with the UK ETS regulatory framework. Responsibility is split across the UK regulators (Environment Agency, SEPA, Natural Resources Wales, and NIEA), with operators outside the UK falling under the Environment Agency. Civil penalties apply for non-compliance in line with the wider UK ETS framework.