UK ETS warning: smaller vessels will be not be immune

While the scope expansion only applies to vessels over 5,000GT, therefore has little relevance to the workboat sector now, the wording in these two sections is a warning to smaller vessel operators:

• Section A: Implementing the UK ETS for Maritime. In this section, we consulted in detail on the implementation of the scheme and provided more detail on the changes announced in the previous Authority Response. This included stating that the threshold would be 5000 gross tonnage (GT) and proposing to review this threshold in future, as well as providing further detail on a definition of a domestic journey, exemptions, a cap adjustment, and the monitoring, reporting and verification (MRV) requirements.

• Section B: Potential further expansion of the UK ETS to additional maritime emissions. Here, we consulted on any potential further expansion to the maritime regime. This included a proposal to review the threshold by 2028 and to consider how a proportion of international emissions could be brought into scope in future, should action from the International Maritime Organization (IMO) be delayed or prove insufficient.

As Workboat CEO Kerrie Forster warns – plans are already in place to lower the weight threshold to vessels over 400GT ‘in the near future’, which will have a massive impact across the sector.

“Whether independent countries stick to the IMO threshold of 400GT or go lower remains to be seen,” he says.

“However my advice for now to business developers in the sector who want a clear understanding of financial projections for any newbuild vessels is – build or design vessels 399GT or below.

“And include IMO Tier III engines as standard, even if the operating area of the vessel doesn’t require it. The Maritime Emission Control Areas are growing exponentially and it will inhibit the sale potential (and value) of the vessel in the future if it isn’t compliant.”

The Workboat Association has been tirelessly updating its members on what it knows about the consultations, meetings and plans that have been rolled out over the past couple of years.

In an email to members, it quoted one of its members, who said: “They’re obviously some way off bringing this in for vessels under 400GT, but there’s no doubt that in some form or another it’s coming at us, so listening in early on at least gives some feel for what we might find affecting our industry within a few years.”

The initial expansion of the ETS is set to go in force in a year’s time, on July 1, 2026.