UK Sets Ambitious Maritime Emissions Targets for 2040

The United Kingdom has announced a new maritime decarbonization plan that aims to reduce greenhouse gas (GHG) emissions from domestic shipping by 30% by 2030 and 80% by 2040 and achieve net zero by 2050, compared with 2008.

The plan is divided into two phases. Initially, the first phase will focus on increasing the efficiency of vessels using existing International Maritime Organization (IMO) rules. During the second phase, the plan will focus on larger vessels. One key policy of this strategy is pricing maritime emissions, which the UK will pursue by pushing for the IMO to introduce a global shipping GHG levy by 2027 and expanding the UK Emissions Trading Scheme (ETS) to domestic maritime emissions starting in 2025.

The UK government also intends to start regulating maritime fuel use by pushing for IMO-level fuel intensity standards and implementing regulations of domestic uses of fuel in 2026. As support for smaller vessels and some sub-sectors, the government has also issued calls for evidence, particularly about achieving zero or very near-zero-emissions at berth, and expects a formal consultation on this in 2025.

Even though maritime emissions have declined 30% since 1990, they still accounted for 8% of the UK’s transport emissions in 2022. The government has indicated that the vessels that have a clear path toward decarbonization will be regulated first, while the more challenging to decarbonize vessels may be subjected to regulatory measures toward the late 2030s.