UK government announces new plans for maritime sector in UK ETS

The UK government has announced a new scheme recognising non-pipeline transport for carbon capture and storage. 

PHOTO: A large container ship at sea. Getty Images

The scheme entails new incentives, recognising non-pipeline transport methods for moving captured carbon like shipping. It will allow operators to deduct the amount of CO2 sent for storage from their reportable emissions.

The UK ETS Authority has sought feedback on proposals to expand the scheme and to include the UK’s domestic shipping emissions under its Emissions Trading Scheme (ETS) from 2026. This consultation will close on 23 January 2025.

The inclusion of shipping emissions under the UK ETS could raise £310 million ($388 million) over three years starting from 2026, the UK Treasury has estimated.

The UK ETS Authority comprises the UK Government, the Scottish government, the Welsh government and the Department of Agriculture, Environment and Rural Affairs for Northern Ireland. The scheme was launched in January 2021, after the country’s exit from the EU ETS.

By Manjula Nair

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