The UK Emissions Trading Scheme (ETS) Authority has proposed expanding the plan to cover emissions from the maritime sector.
The UK ETS intends to identify non-pipeline transport options such as ships, roads, and rail for storing collected carbon in geological storage.
Launched in 2021, the UK ETS aims to decarbonise aviation, electricity, and industry by limiting emissions and trading permits. This creates a carbon price that encourages industries to cut emissions.
Businesses that operate ships on domestic journeys would be required to obtain credits for every tonne of carbon they release if the plan was expanded to include the maritime industry.
This would guarantee that the price of fuels used in the industry more accurately reflects their environmental effect.
Carbon capture and storage will be critical for meeting net zero emissions objectives, particularly in energy-intensive industries like steel, cement, and chemicals.
Sites without direct pipeline connections will need to use alternate modes of transportation, such as road, rail, or ship, to acquire carbon capture and storage technology.
Recognising this under the UK ETS allows operators transferring CO2 for storage to subtract the amount they send to storage from their reportable emissions, providing economic assistance for industrial locations without pipelines.
According to the UK ETS Authority, proposed changes would come into effect from 2026.
In March, Bearing AI updated its Fleet Deployment Optimizer (FDO) solution that promises to revolutionise how shipping companies manage emissions.