The UK will extend its Emissions Trading Scheme to shipping from July 1, covering vessels over 5,000 gross tons, according to OOCL.
Orient Overseas Container Line (OOCL) has announced that the United Kingdom will extend its Emissions Trading Scheme (UK ETS) to the maritime sector starting July 1, as reported in an OOCL press release.
The UK ETS serves as the country's carbon pricing mechanism, aimed at reducing greenhouse gas emissions. Cargo vessels and passenger ships with a gross tonnage of 5,000 and above will be included under this scheme.
In contrast to the European Union's phased approach, the UK ETS mandates that operators account for and surrender allowances for 100 percent of in-scope emissions from the outset.
The coverage encompasses emissions from domestic UK voyages as well as emissions generated while vessels are berthed or operating at UK ports. However, international voyages are currently excluded from the scope, although the government is consulting on potential future inclusion.
OOCL stated that carriers will be required to surrender UK Allowances equivalent to their emissions, with prices subject to market fluctuations.
The company plans to introduce a United Kingdom Emissions Quantum effective September 1, 2026, which will apply to intra-UK shipments, UK to world routes excluding the EU, and UK to EU routes where both UK ETS and EU ETS charges will be applicable.
OOCL noted that the quantum will be reviewed monthly in accordance with UKA prices and additional costs, and it will be governed by the prevailing tariffs published on its website.
