From 1 July 2026, the UK Emissions Trading Scheme (UK ETS) expands to include domestic maritime transport, introducing carbon pricing for qualifying vessels operating in UK waters.
For importers, exporters and businesses moving freight, the biggest change is likely to be seen through additional shipping surcharges appearing on freight invoices.
What is the UK ETS?
The UK Emissions Trading Scheme is the UK’s carbon pricing system, designed to encourage industries to reduce greenhouse gas emissions.
Shipping companies covered by the scheme must purchase and surrender emissions allowances based on the greenhouse gases their vessels produce. The cost of these allowances is expected to be reflected, at least in part, within freight charges.
The UK scheme follows the introduction of the EU Maritime ETS, which began applying to shipping in January 2024 and reached full implementation for emissions reporting in 2026.
What changes from 1 July 2026?
The UK maritime ETS applies to commercial cargo and passenger vessels of 5,000 gross tonnes and above.
The scheme covers:
- 100% of emissions from voyages between UK ports.
- 100% of emissions produced while vessels are in UK ports, including at berth.
- Certain UK domestic routes, with specific rules applying to voyages involving Northern Ireland.
International voyages are not yet fully included within the UK ETS, although the Government has consulted on future expansion.
Will freight costs increase?
In many cases, yes. Shipping companies are responsible for purchasing carbon allowances, and these additional operating costs are generally expected to be passed through the supply chain via ETS surcharges.
Ultimately, these costs can flow from the shipping line to the freight forwarder and then to the cargo owner.
Like fuel surcharges or security surcharges, ETS charges are becoming another component of the total freight cost.
Questions over surcharge transparency
While environmental investment is widely supported across the industry, there have also been discussions around how ETS surcharges are calculated.
Research highlighted by the European freight forwarding association CLECAT, and referenced by BIFA, suggests that some shipping lines may be charging ETS surcharges above the actual cost of compliance in order to account for commercial risk and fluctuations in allowance prices.
Because every carrier uses its own methodology, comparing ETS surcharges between shipping lines can be difficult, leading to calls for greater transparency across the industry.
This does not necessarily mean surcharges are incorrect, but it does reinforce the importance of understanding what individual charges represent
Why this matters
The introduction of the UK maritime ETS is another example of how environmental regulation is becoming an increasingly important part of international logistics.
Alongside fuel prices, port congestion, vessel capacity and global demand, carbon pricing is now another factor influencing freight rates.
How Beckchoice can help
Freight pricing is becoming more complex as regulations continue to evolve. Whether it’s fuel adjustments, ETS surcharges, customs changes or carrier costs, understanding what you’re paying for is just as important as the final price itself.
Our team keeps a close eye on industry developments and is always happy to explain the charges behind your shipment, helping you make informed decisions and plan your supply chain with confidence – get in touch.
References
- UK Government – UK ETS Scope Expansion: Maritime Sector
https://www.gov.uk/government/consultations/uk-ets-scope-expansion-maritime-sector - UK Government – UK Emissions Trading Scheme (UK ETS)
https://www.gov.uk/government/collections/uk-emissions-trading-scheme - UK Parliament – UK Emissions Trading Scheme
https://commonslibrary.parliament.uk/research-briefings/cbp-9488/