UK ETS Isn’t the Only Game: Lesser-Known Shipping Carbon Regulations

The shipping industry is entering a transformative era as regulators ramp up efforts to decarbonize maritime transport. While most operators are aware of the EU ETS and IMO targets, there are three carbon regulations you may not know about — each with operational and financial implications that could reshape your port calls and voyages.

1. UK ETS – Shipping Inclusion (From 1 July 2026)

The UK Emissions Trading Scheme will expand to cover international shipping, targeting vessels 5,000 GT and above undertaking voyages to, from, or between UK ports. Key requirements:

• Monitor and report emissions of CO₂, methane (CH₄), and nitrous oxide (N₂O).

• Purchase and surrender allowances corresponding to reported emissions.

• Face penalties for non-compliance.

The scheme mirrors the EU ETS principles but with UK-specific reporting and administration. It will place a direct carbon cost on shipping emissions, incentivizing low-carbon fuels, operational efficiency, and route optimization.

2. Turkey – National Carbon Pricing for Ships

Turkey recently legislated a carbon fee for ships calling its ports — one of the first non-EU national schemes focused on maritime emissions. Although implementing rules are still pending, early signals indicate:

• Fees likely calculated based on port call or in water emissions, initially focused on CO₂.

• Potential future expansion to other GHGs.

• Market incentives aligned with EU/UK ETS trends, encouraging a shift to low-carbon fuels.

This creates new cost exposure for operators, and early preparation will be key for planning voyages and fuel strategies.

3. California – AtBerth Emissions Regulation

Many shipping operators may not realize that California ports enforce strict at-berth emissions rules: ships running auxiliary engines while docked can face fines if they exceed allowed emissions. Compliance options include:

1. Shore Power (Cold Ironing) – plug into port electricity and shut down onboard engines.

2. CARB Approved Alternative Control Technology – exhaust capture systems or alternative fuels approved by California regulators.

3. Remediation or Innovative Compliance – pay into a CARB fund or propose an emissions-equivalent solution if conventional options aren’t feasible.

This regulation not only protects air quality in port communities but also signals a growing trend of localized carbon enforcement, beyond national ETS schemes.

How to Get Ahead

Proactive planning is essential to avoid fines and manage carbon costs:

1. Assess Your Fleet and Routes – identify vessels above thresholds and map voyages to affected ports.

2. Upgrade Monitoring and Reporting – implement onboard emission tracking, crew training, and internal verification.

3. Explore Fuel and Efficiency Options – consider low-carbon fuels, speed and route optimization, or retrofits for energy efficiency.

4. Plan Financially – model allowance costs (UK ETS), carbon fees (Turkey), or port compliance expenses (California).  

5. Stay Updated – monitor globally for regional and national specific regulatory frameworks to align with compliance timelines.  

Keeping Compliance on Track

From the UK and Turkey’s national carbon schemes to California’s at-berth regulations, shipping is entering a new era of carbon accountability. Operators who proactively assess emissions, adopt cleaner technologies, and plan for regulatory compliance will gain a competitive advantage — turning new rules into opportunities for cost savings, operational efficiency, and leadership in decarbonization.

For those interested in learning more about how to streamline compliance management and prepare for upcoming carbon regulations, additional resources and guidance are available to help navigate the requirements effectively.

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