UK Launches Maritime Strategy with Emission Pricing and Fuel Regulations

The UK’s Maritime Minister, Mike Kane, outlined a new detailed plan for the next stages of the efforts toward maritime decarbonization. While the policy presented to the House of Commons in Parliament builds off the efforts of the International Maritime Organization, it also launches a focus on smaller vessels and targeted subsectors which it says must also participate to reach the goals.

The policy highlights that the UK domestic maritime sector produced around eight million tonnes of CO2 equivalents, on a full lifecycle basis, in 2019. The government has already launched a sweeping Plan for Change and now it looks to bring more parts of the maritime sector in line with the broader policies. Following the IMO’s lead, the UK is setting its goal for the domestic maritime sector aiming for zero fuel lifecycle GHG emissions by 2050. The interim steps are at least a 30 percent reduction by 2030 and an 80 percent reduction by 2040, relative to 2008 levels.

The elements of the strategy call for expanding the UK’s Emission Trading Scheme to include domestic UK maritime GHG emissions starting in 2026. At the same time, the UK says it will advocate at the IMO for the introduction in 2027 of global emission pricing. As part of this, the government says subject to further consultation next year, it will introduce domestic fuel regulations to drive the update of zero and net-zero GHG emission fuels and energy sources. It will also consider further actions at the port vessel to reduce at berth emissions.

The UK also looks to expand its policies to smaller vessels, i.e. sub-400 gross tons. It points out that it will be difficult for some sectors such as fishing vessels while others such as offshore wind support vessels could lead the sector. The government is issuing a call for evidence to begin this policy development.

The government will also launch a further exploration of the efforts at the port level. It will look at whether ports are planning decarbonization and the strategies for wider environmental considerations.

While recognizing that the efforts will be challenging for the sector, the government also cites opportunities for investment and creating new economic opportunities. They note that conservative estimates show that decarbonization of the UK maritime sector could support £130 to £180 million (US$168 to $233 million) of gross value added and around 1,400 to 2,100 jobs in the UK on average each year to 2050.

The UK Chamber of Shipping hailed the release of the new strategy saying it welcomed the Government’s publication of the Maritime Decarbonization Strategy, as a much-needed successor to the 2019 Clean Maritime Plan.

“The Government’s strategy must now be matched by delivering the regulatory framework, technology and infrastructure, including a shore power revolution, required to support the green transition for UK maritime, bringing benefits to maritime communities and the UK economy,” said UK Chamber CEO Rhett Hatcher. “We look forward to working collaboratively alongside government to progress this important agenda and reach our shared goals of a cleaner, more resilient maritime sector in the UK.”