New carbon rules threaten UK ports edge

The UK’s early move to expand the UK Emissions Trading Scheme (UK ETS) to offshore vessels could raise port costs and weaken UK port competition.

The image shows a head shot of a smiling Mark Simmonds, director of policy at the British Ports Association (BPA)

That’s according to the British Ports Association (BPA), in response to the UK ETS Authority’s interim response that it will proceed with bringing offshore energy vessels into the scheme from July 2026, well ahead of the EU’s own timeline. 

“We are bitterly disappointed at this own goal, which will undermine the competitiveness of UK ports, particularly with those European operators involved in offshore wind contracts,” said Mark Simmonds, director of policy at the British Ports Association (BPA).

“It is difficult to understand the reasoning for pushing forward at such pace, with no phase in as other industries have had and no plan to roll back the scheme when international measures take effect and duplicate the regulation later this decade. It is not too late to change course.”

Knock-on effect

The expansion of the UK ETS affects vessels supporting offshore wind and other energy projects, which may now face higher emissions costs for docking at UK ports compared to EU counterparts.

Under the expansion, vessels over 5,000 gross tonnage will be charged for emissions on UK domestic journeys and while in UK ports.

The Authority said this will strengthen incentives to adopt low-carbon fuels and improve fuel efficiency across maritime operations.

But the BPA warns the policy could shift offshore wind operations to continental ports, increasing project costs and reducing investment in the UK’s green energy infrastructure.

Meanwhile, the Authority said it will address the remaining questions in a full response addressing concerns relating to exemptions, Northern Ireland routes and the cap adjustment, among other proposals. That’s expected in due course.