UK ETS – Emissions Trading System

The UK ETS applies to shipping from 1 July 2026 for cargo and passenger vessels of 5,000 GT and above. Offshore vessels ≥5,000 GT are included from 1 January 2027.

All compliance obligations, including reporting and surrendering allowances, start from these dates.

The scheme applies to emissions from:

• Domestic UK voyages (UK port to UK port)
• Voyages beginning and ending at the same UK port
• Emissions in UK ports, even when linked to international voyages
• At anchor or offshore activity near UK structures

International voyages do not fall under the UK ETS scheme unless emissions occur inside the UK port.

A domestic voyage means any voyage:

• Between two UK ports, or
• Starting and ending at the same UK port (e.g. repositioning, circular routes)

Voyages between the UK and non-EEA ports or UK Overseas Territories are not considered domestic.

Operators must report on:

• CO₂ (carbon dioxide)
• CH₄ (methane)
• N₂O (nitrous oxide)

These are measured on a tank-to-wake basis. CH₄ and N₂O must be converted into CO₂-equivalent emissions using IPCC AR5 GWP values.

Biofuel CO₂ emissions are treated as zero.

N₂O and CH₄ are weighted by their Global Warming Potential (GWP) values from the IPCC Fifth Assessment Report (AR5): GWP 28 for CH₄ and GWP 265 for N₂O. 

Responsibility lies with the registered owner, unless a legally binding agreement assigns responsibility to the ISM company.

Evidence of such an agreement must be submitted to the regulator.

The regulator is assigned based on the operator’s registered business address:

• England: Environment Agency
• Scotland: SEPA
• Wales: Natural Resources Wales
• Northern Ireland: NIEA
• Operators outside the UK: Environment Agency (default)

The EMP outlines the operator’s monitoring approach, including:

• Vessel list and particulars
• Emission sources
• Monitoring methodology
• Data acquisition and calculation methods

Only one EMP per company can be submitted in METS.

The EMP must be verified by a UKAS-accredited verifier before submission.

The company must submit an EMP to the regulator without undue delay and no later than 42 days after that ship’s first call at a port under the UK jurisdiction.

31 March – submit the verified Annual Emissions Report

30 April – surrender the required emission allowances in the UK ETS Registry

For the first compliance period (1 July to 31 December 2026):

Report by 31 March 2027

Surrender by 30 April 2028

The first surrender deadline for the 2026 and 2027 scheme years is 30 April 2028.

Operators must surrender allowances equal to their verified emissions.

Allowance surrender takes place in the UK ETS Registry and is supervised by the assigned regulator.

Yes. A 50% deduction applies to emissions from voyages between Northern Ireland and Great Britain.

Yes. Exemptions apply to: 

• Government non-commercial vessels
• Fishing and fish-processing vessels
• Vessels operating a Scottish ferry service

An activity is excluded if performed for the exclusive purpose of the following:

• The transport, on official mission, of:
  • A reigning monarch and their immediate family, or head of state of a country other than the UK
  • A minister of a national government of a country other than the UK
• Military activities
• Search and rescue
• Firefighting
• Providing humanitarian aid or assistance
• Carrying out a government function not otherwise falling within the activities listed above

No. The UK ETS does not require a Document of Compliance. All obligations are monitored digitally via METS and the UK ETS Trading Registry.

All submissions – including EMPs and Annual Emissions Reports – are handled via METS (Manage your Emissions Trading Scheme) and the UK ETS Trading Registry. Submission modules will be activated ahead of the July 2026 start date.

The UK MRV framework has been discontinued as of 2 April 2026.

UK MRV emissions reports should therefore only cover the period up to and including this date. Any reports extending beyond 2 April 2026 should be corrected accordingly.

The subsequent period from 3 April 2026 to 30 June 2026 is not subject to reporting under either UK MRV or UK ETS.

UK ETS monitoring and reporting obligations for the maritime sector apply from 1 July 2026.

DNV provides:

• Verification of UK ETS Emissions Monitoring Plans
• Annual emissions verification (AER)
• UKAS-aligned verification services
• Digital compliance tools via DNV Emissions Connect
• Guidance on METS submissions and allowance management

DNV ensures a smooth and robust verification process aligned with UK ETS requirements.

DNV is an independent, UKAS-accredited verifier for UK MRV.

DNV is in the process of obtaining the extension of their UK MRV Accreditation to UK ETS. Once this extension is in place, DNV will perform verification of Emissions Monitoring Plans and Annual Emissions Reports in accordance with applicable UK ETS requirements and accreditation standards.