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UK ETS: The United Kingdom’s Emissions Trading Scheme

From 1 July 2026 the UK ETS brings maritime into scope. Like the EU ETS carbon-pricing regime, it has its own registry, allowances (UKAs) and deadlines. Knowing what is covered, who holds the obligation, and how to source allowances efficiently is now part of operating in UK waters.

What is the UK ETS

Dan‑Bunkering can help you develop and execute an efficient, data‑driven UK ETS compliance plan.

 

 

 

The UK Emissions Trading Scheme is the United Kingdom’s cap-and-trade carbon market. A cap is set on total emissions, allowances are issued up to that cap, and each year covered operators must surrender one UK Allowance (UKA) for every tonne of greenhouse gas they emit. The cap falls over time, so allowance prices (and therefore your costs) can move even when your voyages do not.

Maritime joins from 1 July 2026, administered by the UK ETS Authority and run separately from the EU ETS.

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How to comply

There are four core steps to complying with UK ETS:

 

  1. Emissions Monitoring Plan (EMP) - submit one per vessel to your verifier for approval. 
  2. Monitor and report - collect emissions data for the reporting period in line with your approved EMP.
  3. Submit your Annual Emissions Report - to verifiers for verification before 31 March every year.
  4. Buy and surrender allowances - through your UK ETS Registry account before 30 April.

 

What you can do now:

 

  1. Confirm inclusion - determine whether you are in scope, and who holds the obligation across your fleet and charters.
  2. Practicalities - start your EMP and begin opening your UK ETS Registry account.  
  3. Cost allocation - set ETS cost responsibility clearly in your charter party terms. Costs are passed on through commercial agreements rather than regulation. 
  4. Risk management - plan UKA procurement and price risk from the moment you commit to a charter. 
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How we help

Dan-Bunkering supports clients across both the setup and the commercial side of the UK ETS:

 

  • Account setup - we offer guidance on establishing a UK Registry account.
  • Map your exposure - evaluate your likely UKA liability based on your trading pattern. 
  • Source your UKAs - spot, forward and tailored purchasing plans through Global Risk Management.
  • Regulatory advisory - understand the similarities and differences with the EU ETS. 

 

 

Frequently Asked Questions

UK ETS vs EU ETS - do I need to account twice?

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You will not surrender twice for the same tonne. The regimes cover different parts of your operation but you will run parallel reporting and hold allowances in both registries. The EU ETS and UK ETS are two separate schemes, with separate registries, allowances and deadlines.  The EU ETS covers intra-EU voyages at 100% and in/out voyages at 50%. The UK ETS covers domestic UK voyages plus UK in-port emissions, with no international voyages yet.

How do I buy UKAs?

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UKAs are available through government auctions and on the secondary market. To hold them you first need a UK ETS Registry account. Rather than navigate the market alone, you can source UKAs through Dan-Bunkering and Global Risk Management, with spot, forward or tailored options matched to your exposure.

Reach out to our New Fuels team and learn more

Can I buy UKAs now, and why should I buy before the deadline?

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Yes. As soon as your account is open, you can commence purchasing UKAs. 

The scheme is live and your obligation is already accruing. Buying ahead of the deadline lets you manage price risk and secure availability, rather than buying reactively when allowances may be more expensive. Forward agreements also help you plan cashflow rather than facing a single large purchase at surrender.

I am registered outside the UK. Am I in scope?

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Yes. The scheme applies regardless of your flag or country of registration. It applies based on activity. The responsible party is the doc holder. We can help you identify the right regulator and open your account. 

What happens if I do not comply?

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Failing to surrender enough allowances exposes you to penalties of £100 per allowance that you fail to surrender. Compliance is manageable when planned early and costly when left to the deadline.

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