Please be advised that effective 1 July 2026, the scope of the UK Emissions Trading Scheme (UK ETS) has been extended to include the maritime industry. Consequently, Members operating vessels subject to these regulations need to ensure compliance with the new requirements and make appropriate arrangements in their charterparties.

A summary of the scheme and key points to note is provided below:

■ Summary and Key Points to Note

Overview and Commencement: Effective 1 July 2026, greenhouse gas emissions (CO2, methane, and nitrous oxide) from domestic voyages between UK ports, as well as emissions generated during port calls at UK ports (including calls at a single port), fall under the scope of the UK ETS.

Applicable Vessels: The scheme applies to vessels of 5,000 gross tonnage (GT) and above. At present, "international voyages" arriving at or departing from UK ports are excluded from the scheme (although the time spent at the port itself is subject to the regulations).

Shipowners' Obligations: Shipowners of applicable vessels are required to establish an approved emissions monitoring plan, submit annual emissions reports (subject to third-party verification), and purchase and surrender UK ETS allowances corresponding to their verified emissions.

Impact on Charterparties: For time charterparties where there is a possibility of calling at UK ports, it is highly recommended to incorporate appropriate ETS clauses (such as BIMCO clauses) to clearly define the allocation of costs and operational responsibilities.

For further details, please refer to the attached document prepared by the Association's legal counsels, Mr. Mark van Velden and Mr. William Turner.