UK adds maritime transport to emissions trading scheme Ship’s crew

The UK Emissions Trading Authority (ETS) recently unveiled a series of reforms aimed at tightening emissions limits for the industrial, energy and aviation sectors from 2024. These reforms will further extend the emissions cap to other UK sectors such as domestic maritime transport and waste.

This is the first time that the inland maritime transport, waste incineration and energy-from-waste sectors are included in the scheme. It is in line with the UK’s commitment to include high-emitting sectors in the UK ETS and will provide an incentive for companies in these sectors to reduce their emissions and invest in cleaner alternatives.

The UK ETS will cover domestic maritime transport from 2026 and incineration and waste from the energy sector from 2028. The schedule is intended to give operators time to prepare for the changes. The extension only applies to large seagoing vessels with a gross tonnage of 5,000 and more.

The UK ETS was introduced in 2021 to replace the country’s participation in the EU ETS. The system promotes decarbonization through the purchase and sale of carbon credits. Companies must receive these allowances for every tonne of emissions they produce annually. Companies that successfully reduce their emissions can sell unused allowances to other companies.

In a joint statement, ETS ministers underlined the importance of accelerating the transition from expensive fossil fuels to greener and safer energy sources.

“The decisions made here will not only put us on the path to net-zero emissions, but also support key industries on their journey to long-term sustainability,” the statement said.

The UK Chamber of Shipping has welcomed the inclusion of domestic shipping in the ETS, recognizing it as an important step towards achieving net-zero emissions in the UK shipping sector. However, the Chamber emphasizes that international agreements remain the most effective means of driving lasting change across the industry.

“It is important that as the details of the scheme become clear, it supports the journey towards net zero and does not hinder it.” This means that ETS funds from domestic shipping must be used to support the transition to net zero. Support zero point for the sector. This should include support for the development of zero-emission ships, fuels and technologies, and related port infrastructure,” the chamber said.

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