UK ETS / Maritime
Compliance
Powered by CyberSmart Smart EMRV and Smart EUA Settlement. The UK Emissions Trading Scheme extends to domestic maritime transport from 1 July 2026, covering CO2, methane (CH4), and nitrous oxide (N2O) from ships of 5,000 GT and above on voyages between UK ports and during in-port activities. Operators must obtain an approved Emissions Monitoring Plan, report verified emissions via the METS platform, and surrender UK Allowances annually. With the first reporting period just six months long and civil penalties for non-compliance, early preparation is essential.
What is UK ETS Maritime?
The UK Emissions Trading Scheme (UK ETS) is the United Kingdom's cap-and-trade carbon market, established post-Brexit as the successor to UK participation in the EU ETS. From 1 July 2026, the scheme extends to domestic maritime transport, requiring operators of qualifying ships to monitor, report, and surrender allowances for greenhouse gas emissions on voyages between two UK ports and during in-port activities at UK ports.
Unlike the EU ETS, which covers international voyages to and from EU ports, the UK ETS maritime scope focuses on domestic shipping. The regulated entity is the registered owner by default, unless responsibility is formally delegated to the ISM company by written agreement. Each operator must apply for an Emissions Monitoring Plan (EMP) at company level—not per ship—within 42 days of their first qualifying maritime activity from 1 July 2026.
Compliance Timeline
Voluntary Onboarding Open
Request a METS account and apply for an EMP at no cost. Completed applications are approved in principle, ready to be issued after 1 Jul 2026.
Scheme Starts
UK ETS maritime begins. First reporting period: 1 Jul – 31 Dec 2026 (6 months).
EMP Deadline
Apply for Emissions Monitoring Plan approval within 42 days of first qualifying activity.
2026 Report Due
Verified emissions report for the 2026 period due via the METS platform.
Double Surrender
One-off combined allowance surrender deadline for both 2026 and 2027 schemes.
Coverage & Exemptions
The UK ETS maritime scope targets domestic shipping between UK ports while providing specific exemptions for government, safety, and certain specialist vessel categories.
What's Covered
The scheme covers ships of 5,000Â GT and above performing in-scope maritime activities on voyages between two UK ports (excluding Crown Dependencies and British Overseas Territories), plus in-port activities at any UK port regardless of the preceding or next voyage.
- Emissions from UK domestic voyages between two UK ports and in-port activities at UK ports
- Operators surrender allowances equal to the emissions figure for surrender (maritime emissions less any applicable surrender deduction)
- 50% surrender deduction for voyages between Northern Ireland and Great Britain while the disparity with EU ETS remains
- CO2, CH4 (methane), and N2O (nitrous oxide) all covered from launch
- Regulated entity: registered owner (or ISM company by written delegation)
Excluded Activities
Certain activities are excluded from UK ETS maritime scope. Some exclusions are subject to later review. Contact the relevant regulator for queries about specific vessel activities.
- Armed services, law enforcement, and government surveillance ships
- Navigation and safe passage support vessels
- Marine protection and coastguard / SAR vessels
- Publicly funded research vessels
- Medical emergency vessels
- Non-mechanically propelled ships and primitive wooden ships
- Fishing and fish processing vessels (subject to later review)
- Scottish ferry services (subject to later review)
- Offshore vessels excluded until 1 January 2027
Compliance Requirements
Operators must follow a three-step compliance cycle: obtain an approved Emissions Monitoring Plan, submit verified annual reports, and surrender allowances by the statutory deadline.
Emissions Monitoring Plan
- Apply within 42 days of first qualifying maritime activity from 1 Jul 2026
- EMP is at company level, not individual ship level
- Submit to the relevant UK regulator for approval
- Environment Agency (England + non-UK operators), NRW (Wales), SEPA (Scotland), DAERA (Northern Ireland)
- Early onboarding via Environment Agency METS platform available now
Reporting & Verification
- First reporting period: 1 Jul – 31 Dec 2026 (6 months only)
- From 2027 onwards: full calendar year (1 Jan – 31 Dec)
- Verified emissions report due by 31 March of the following year
- 2026 verified report deadline: 31 March 2027
- Reports submitted via the METS platform
Allowance Surrender & Penalties
- Standard allowance surrender deadline: 30 April of the following year
- One-off double surrender for 2026 and 2027 schemes: 30 April 2028
- Civil penalties for non-compliance with monitoring, reporting, or surrender obligations
- Publication of operator names for persons subject to the excess emissions penalty
- Allowances must cover all verified emissions from qualifying voyages
Onboarding & Accounts
Voluntary early onboarding is open now. Understanding the relationship between the METS platform, the UK ETS Registry, and your allowance options helps you prepare ahead of the 1 July 2026 start date.
Voluntary Phase
- Operators can request a METS account and apply for an EMP now at no cost
- Completed EMP applications are approved in principle during the voluntary phase
- Approved-in-principle EMPs are ready to be formally issued after 1 July 2026, subject to any updates required by the regulator
- Early engagement reduces the risk of missing the 42-day statutory deadline once the scheme begins
METS vs Registry vs MOHA
- METS is used to create, view, and amend your EMP and to submit emissions reports
- The UK ETS Registry is a separate platform where allowances are held and surrendered
- During the voluntary onboarding phase there are no Registry actions for prospective operators
- Once the EMP is formally issued after entry into scope, the Registry Administrator creates your Maritime Operator Holding Account (MOHA)
Allowance Procurement
- A separate UK ETS Trading Account is optional — it is not required to hold or surrender allowances
- Operators do not need to participate in government auctions to buy UK Allowances (UKAs)
- UKAs can be procured through intermediaries and transferred directly to your MOHA for surrender
- Varuna Marine Services can manage the entire procurement and surrender process on your behalf
Our UK ETS Solutions
We provide end-to-end UK ETS maritime compliance support, from Emissions Monitoring Plan development through to allowance procurement and surrender.
EMP Development
Preparation and submission of your company-level Emissions Monitoring Plan for approval by the relevant UK regulator within the 42-day statutory deadline
Emissions Monitoring
Continuous monitoring of CO2, CH4, and N2O emissions from qualifying ships on UK domestic voyages and in-port activities
Reporting & Verification
Compilation and third-party verification of annual emissions reports for submission via the METS platform by the 31 March deadline
Allowance Procurement & Surrender
We provide UK Allowances (UKAs) on your behalf — no Trading Account or auction participation needed. Strategic procurement and timely surrender to your MOHA by the 30 April deadline to avoid civil penalties
Regulatory Liaison
Direct engagement with the Environment Agency, NRW, SEPA, or DAERA on your behalf for EMP approvals, queries, and compliance matters
Fleet Strategy
Voyage and fleet planning to optimise emission profiles, identify exemptions, and minimise UK ETS exposure across your domestic operations
Reference Links
Official sources for UK ETS maritime legislation, authority guidance, and the METS reporting platform.
UK Legislation
The Greenhouse Gas Emissions Trading Scheme (Extension to Maritime Activities) Order 2026 extending UK ETS to domestic maritime.
Visit sourceUK ETS Authority Guidance
Official guidance from the UK ETS Authority on participating in the scheme, including maritime-specific requirements.
Visit sourceEnvironment Agency METS
The Maritime Emissions Trading System platform for creating, viewing, and amending your Emissions Monitoring Plan and submitting emissions reports. Allowance surrender is handled separately through the UK ETS Registry via the Maritime Operator Holding Account (MOHA).
Visit sourceFrequently Asked Questions
Common questions about our UK ETS Maritime services and compliance requirements.
The UK Emissions Trading Scheme (UK ETS) extends to domestic maritime transport from 1 July 2026. It requires operators of qualifying ships to monitor, report, and surrender allowances for CO2, methane (CH4), and nitrous oxide (N2O) emissions on voyages between two UK ports and during in-port activities at UK ports. The first reporting period covers 1 July to 31 December 2026.
Related Solutions
Services that complement UK ETS Maritime for comprehensive maritime compliance.
EU ETS Maritime
End-to-end EU Emissions Trading System compliance for shipping companies including EUA procurement, MRV reporting, monitoring plans, and multi-gas preparation.
Learn moreEUA Procurement
Strategic EU Allowance procurement and carbon trading through EEX-listed markets with price risk management and compliance monitoring.
Learn moreCII Rating
Carbon Intensity Indicator rating optimization including SEEMP Part III development, corrective action plans, and energy efficiency improvements.
Learn moreReady to Prepare for UK ETS Maritime?
With the scheme starting 1 July 2026 and the 42-day EMP deadline, early preparation is critical. Get expert guidance on your Emissions Monitoring Plan, reporting obligations, and allowance strategy.