The UK Emissions Trading Scheme Authority has issued an interim response to the 2024 consultation on expanding the scheme to the maritime sector.
The Authority confirmed it will proceed with plans to bring offshore vessels into the UK ETS ahead of the European Union’s timeline an approach that may significantly increase the cost of using UK ports.
While the stated goal is to align the UK and EU carbon pricing systems, the decision to include vessels servicing the offshore energy industry earlier than the EU could have unintended consequences, particularly for the UK’s competitiveness in offshore wind and energy support logistics.
Mark Simmonds, Director of Policy at the British Ports Association, voiced strong concerns over the announcement, expressing his disappointment by what they see as a self-inflicted blow to UK ports’ competitiveness especially those supporting offshore wind projects and working with European operators.
Simmonds further criticized the rapid implementation timeline and lack of transitional measures saying it’s difficult to understand why the UK is pushing forward so aggressively without the phased introduction that other industries have received, without de minimis thresholds to protect smaller operators, and with no plan to withdraw the scheme once international regulations come into effect later this decade.
The British Ports Association has long advocated for balanced, internationally harmonized regulation in maritime carbon pricing. The current UK approach, it argues, risks damaging the very industries it aims to support in the transition to cleaner energy.
