Announcement on United Kingdom Emissions Trading System (UK ETS) related Quantum
Dear Valued Customer,
As global attention on climate change and decarbonization continues to increase, environmental regulations applicable to the shipping industry are expanding across various jurisdictions. Following the implementation of the European Union Emission Trading System (EU ETS) for maritime transport, the United Kingdom has also extended its Emissions Trading Scheme (UK ETS) to the maritime sector, effective from July 1, 2026.
This announcement serves to provide an overview of the UK ETS and the related impact on maritime transportation that customers should be aware of.
About UK ETS
The United Kingdom Emissions Trading Scheme (UK ETS) is the UK's carbon pricing mechanism designed to reduce greenhouse gas emissions and support businesses through the net zero transition.
Under the scheme, a limit is placed on the total amount of greenhouse gases that can be emitted by covered sectors. Companies subject to the scheme are required to monitor, report, verify, and surrender emission allowances corresponding to their verified emissions.
Following the UK Government's decision to expand the scheme to maritime transport, cargo vessels and passenger ships of 5,000 gross tons and above will be brought within the scope of UK ETS from July 1, 2026.
Unlike the EU ETS maritime implementation, which introduced emissions coverage through a phased approach, the UK ETS requires operators to account for and surrender allowances for 100% of in-scope emissions from the commencement of the scheme.
Coverage of UK ETS in Maritime Transport
During this initial phase of implementation, the UK ETS will apply to:
- Domestic UK Voyages
Emissions generated on voyages between UK ports. Examples include voyages between ports located within the United Kingdom.
- Emissions at UK Ports
100% of emissions generated while vessels are berthed, anchored, loading, discharging, or otherwise operating within UK ports, regardless of whether the vessel is on a domestic or international route.
Currently not in scope: - International Voyages
The UK Government is consulting on the potential inclusion of a portion of emissions from international voyages, i.e. voyages between UK ports and non-UK ports, in future phases of the scheme.
Effects and Emission Quantum
Under the UK ETS, shipping carriers will have to surrender UK Allowances (UKAs) equivalent to their emissions.
The UKA price is market-based and may fluctuate over time depending on market conditions and trading activity.
Despite OOCL's continuous efforts to improve operational efficiency and reduce greenhouse gas emissions across its fleet and operations, the implementation of UK ETS will inevitably generate additional costs to be shared with cargo owners and shippers to fulfil the relevant regulatory requirements. OOCL will be introducing a United Kingdom Emissions Quantum (UK ETS Quantum), effective September 1, 2026, for cargo moving on affected service routes and services within the scope of the UK ETS. The quantum will be subject to monthly reviews in response to the latest UKA price and additional costs incurred in relation to UK ETS.
UK-related emission quantum will apply as follows:
• Intra-UK shipments: UK ETS Quantum only
• UK ↔ World (excluding EU): UK ETS Quantum only
• UK ↔ EU: EU ETS Quantum plus UK ETS Quantum
The UK ETS Quantum set out in this notice is subject to monthly review and governed by and subject to carrier's prevailing tariff(s) published on www.oocl.com/ [OOLL-100 Rule T-66-ETS Compliance Fee] effective from 01st September 2026, valid until further notice (unless otherwise specified).
Please use the webpage link to Tariff & Rate Enquiry for full price (including base rate, bunker-related charges, security-related charges and additional charges and surcharges reflecting high demand, such as Peak Season Surcharges) on www.oocl.com. Local surcharges and contingency charges may apply.
Thank you for your understanding and continued support of OOCL.
We believe that we are taking the right step towards a greener future with you and all our stakeholders.
For you have any enquiry, please do not hesitate to contact your OOCL Sales Representatives.
Yours faithfully,
Orient Overseas Container Line
