“What do I need to know about changes to the UK Emissions Trading Scheme?”
- What is the UK Emissions Trading Scheme?
- Why is Shipping being added to the ETS?
- What do ETS changes mean for the UK Shipping industry?
- The latest industry news.
What is the UK Emissions Trading Scheme?
The UK Emissions Trading Scheme (ETS) is not new. Announced in 2020 and launched in 2021, the scheme was introduced to replace the UK’s participation in the EU ETS following Brexit.
It’s managed by the UK ETS Authority, a joint body made up of the UK, Scottish, and Welsh governments, and the Department of Agriculture, Environment and Rural Affairs in Northern Ireland.
The goal, according to the UK Government website, is…
“To increase the climate ambition of the UK’s carbon pricing policy, while protecting the competitiveness of UK businesses.”
In other words, the scheme incentivises decarbonisation, and does so by placing a cap on the amount of greenhouse gases certain high-carbon sectors can emit annually. To cover their annual greenhouse gas emissions, companies in relevant industries must buy or sell emissions allowances.
The industries already covered include Aviation and Power, with expansion to other sectors coming soon.
Why is Shipping being added to the ETS?
Marking another decisive step towards decarbonisation, the UK ETS Authority announced plans earlier this month (July 2023) to add Domestic Shipping to the Emissions Trading Scheme.
The hope is that the initiative will incentivise companies within the sector to not only reduce emissions, but also ramp up investment in green energy alternatives. This, in turn, will pave a faster route to net zero for Shipping and Transport, which has already cut emissions by over 37% since 1990.
It’s certainly an important move for an industry that accounts for 3% of greenhouse emissions globally.
What do ETS changes mean for the UK Shipping industry?
UK Domestic Shipping will be included in the ETS from 2026. However, the scheme will only apply to large ships with a gross tonnage of 5,000.
The advanced announcement is intended to give organisations plenty of time to prepare for the changes. This, then, would be a good time to evaluate your company’s approach to decarbonisation. Do you, for example, have professionals onboard with the relevant expertise to ensure a smooth transition to cleaner, more secure energy sources?
If not, we can help…
We specialise in Transport, Logistics and Shipping talent acquisition across multiple sectors throughout the UK and Europe. So, whether you’re looking for top talent or a new opportunity in the Shipping sector, we can provide the advice or support you need – just give us a call!
The latest industry news
We don’t just recruit in our specialist sectors.
At Aspion Search, we’re passionate about the industries we operate in and always have an eye out for important updates and industry trends. That’s why we started Aspion Insider…
A round-up of the biggest news stories from across the Transport & Logistics, Shipping, Sales and Metals markets (with featured job opportunities coming soon!), Aspion Insider is your first port of call for all the latest industry insights.