UK ETS for Shipping
Since July 1, 2026, the maritime sector has been covered by the UK Emissions Trading Scheme (UK ETS). Commercial cargo and passenger ships of 5,000 GT or more calling at UK ports must monitor, report, and have their greenhouse gas emissions independently verified. In addition, operators must surrender sufficient United Kingdom Allowances (UKAs) to cover the emissions covered by the scheme.
The UK ETS applies regardless of a ship’s flag and covers CO₂, methane (CH₄), and nitrous oxide (N₂O). Starting January 1, 2027, offshore vessels of 5,000 GT or more will also fall within the scope. The previous UK MRV regulations were repealed as of April 3, 2026. Since then, maritime emissions have been regulated under the UK ETS.
How the UK ETS Process Works
UK ETS compliance is managed at the company level—from defining your approach to submitting the required emission allowances. The process consists of five steps.
UK ETS Process
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1. Emissions Monitoring Plan (EMP)
Develop an Emissions Monitoring Plan (EMP) at the company level. In this plan, you outline how you will monitor the emissions from all ships covered by the UK ETS. You must submit the plan via METS to the designated UK regulator for approval.
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2. Monitoring Emissions
Monitor and record the emissions of all ships within the scope during the reporting period. Do this in accordance with the approved Emissions Monitoring Plan.
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3. Annual Emissions Report (AER)
At the end of the reporting period, prepare an Annual Emissions Report (AER) at the company level. In this report, compile the emissions data for all ships covered by your UK ETS obligations.
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4. Independent Verification
A UKAS-accredited verifier reviews the Annual Emissions Report. This determines whether your emissions reporting complies with the monitoring and reporting requirements of the UK ETS.
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5. Surrender UK Allowances
Submit the verified Annual Emissions Report via METS. You will then surrender sufficient United Kingdom Allowances (UKAs) through the UK Emissions Registry to meet your annual obligations.
Mastering Monitoring, Reporting, and Verification
Reliable UK ETS reporting starts with accurate emissions data. Normec Verifavia combines maritime verification expertise with digital processes for collecting, validating, and verifying data. This reduces manual work and helps improve the quality of your data.
Our structured approach supports you in efficiently preparing your Annual Emissions Report and ensuring its independent verification.
This helps you:
- Collect and monitor emissions data in a structured manner
- Identify missing or incorrect information early on
- Prepare your Annual Emissions Report efficiently
- Have your emissions data independently verified
- Be prepared in a timely manner for reporting and submitting UKAs
The expansion of accreditation for UK ETS verification is currently pending. You can already submit your emissions data and supporting documentation to prepare for the verification process in a timely manner.
Which ships and emissions are covered by the UK ETS?
The UK ETS applies to commercial cargo and passenger ships of 5,000 GT or more that call at UK ports. Starting January 1, 2027, offshore vessels of 5,000 GT or more will also be covered by the scheme. The UK ETS covers CO₂, CH₄, and N₂O and calculates greenhouse gas emissions on a tank-to-wake basis. Methane and nitrous oxide are converted to CO₂ equivalents (CO₂e).
The emissions that count depend on the route. For voyages between UK ports, emissions at sea and in port are fully counted. For voyages between Great Britain and Northern Ireland, a partial obligation applies. For voyages between the United Kingdom and international or EU/EEA ports, only emissions occurring during a stay in a British port are covered by the regulation.
Exceptions apply to specific ships and activities, such as certain non-commercial government activities, commercial fishing, and certain ferry services in Scotland. The current 5,000 GT threshold and the framework for exemptions will be reassessed in 2028. This review will also consider a possible reduction of the threshold to 400 GT.
From Emissions Reporting to UK Allowances
In addition to reporting requirements, the UK ETS also has financial implications. Operators must purchase UK Allowances (UKAs) corresponding to their verified greenhouse gas emissions. No free UKAs are allocated to the shipping sector. Emissions allowances are available through government auctions or the secondary carbon market. European Union Emissions Allowances (EUAs) cannot be used for the UK ETS.
It is therefore important to clearly define commercial responsibilities as well. The UK government does not prescribe how carbon costs are to be allocated between shipowners and charterers. Therefore, establish clear agreements regarding the purchase of UKAs, the sharing of emissions data, the allocation of carbon costs, and liability in the event of non-compliance.
The first reporting period runs from July 1 through December 31, 2026. The first verified AER must be submitted by March 31, 2027. The first deadline for submitting UKAs is April 30, 2028, and covers both the second half of 2026 and the entire 2027 reporting year
Ready to prepare for the UK ETS?
Normec Verifavia supports shipowners, ship managers, and maritime operators with monitoring, reporting, and independent verification of emissions data within the UK ETS.
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Frequently Asked Questions About Shipping UK ETS
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As of July 1, 2026, the UK Emissions Trading Scheme (UK ETS) applies to commercial cargo and passenger ships with a gross tonnage (GT) of 5,000 or more that call at UK ports, regardless of their flag. Offshore vessels with a gross tonnage (GT) of 5,000 or more will be subject to this scheme effective January 1, 2027.
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The percentage of emissions counted depends on the route:
- 100% of emissions at sea and in ports for voyages between UK ports;
- 50% at sea and 100% in port for voyages between Great Britain and Northern Ireland;
- 0% at sea and 100% while in a UK port for voyages between the United Kingdom and international ports or EU/EEA ports.
For voyages involving the United Kingdom’s overseas territories and Crown dependencies, only emissions generated while in British ports are covered by the system.
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The registered owner is legally responsible for compliance with the UK Emissions Trading Scheme (UK ETS). This responsibility may be formally transferred to ISM or the DOC holder through a signed power of attorney or a legally binding agreement.
Clearly define who is responsible for monitoring, reporting, surrendering UKA allowances, and allocating carbon-related costs.
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You develop a company-wide emissions monitoring plan and then monitor the emissions from all applicable vessels. At the end of the reporting period, you prepare an annual emissions report and have it verified by an independent body.
You submit the verified report via METS. You then surrender the required UKAs through the UK Emissions Registry.
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The UK Emissions Trading System (UK ETS) uses two digital systems. METS allows you to submit the Emissions Monitoring Plan and the Annual Emissions Report, as well as to communicate with the regulatory authority.
The UK Emissions Registry is used to receive, transfer, and surrender UKA allowances. No physical “Document of Compliance” is issued under the UK Emissions Trading Scheme (UK ETS).
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A civil fine of £100 per metric ton of CO₂e may be imposed for emissions not covered by the submitted UKAs. Payment of the fine does not replace the original obligation. You must still purchase and surrender the missing UKAs. Persistent non-compliance may also result in further enforcement actions and reputational risks.
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Normec Verifavia supports you in the independent verification of your emissions data and your annual emissions report. With our maritime expertise, digital integrations, and a structured verification process, we help you ensure the quality of your data and prepare in a timely manner to meet your reporting obligations.
The extension of our accreditation for verification under the UK Emissions Trading Scheme (UK ETS) is currently under review. You can already submit your emissions data and supporting documentation to us to prepare for the process.