UK sets course for net-zero shipping by 2050 with new decarbonisation targets

Posted: 04/06/2025

As part of the UK’s Maritime Decarbonisation Strategy, the UK government has released its first domestic shipping decarbonisation targets. The new publication sets out a blueprint for transitioning the shipping sector to net-zero emissions by 2050, a strategy which aligns with the ambitions of the International Maritime Organisation (IMO). 

Among the high level objectives are a reduction in greenhouse gas (GHG) emissions of 30% by 2030, 80% by 2040, and net-zero by 2050, relative to 2008 levels.

Five key policy measures have been outlined to achieve these targets:

Regulating fuel use

The UK advocated for a GHG intensity fuel standard at the Marine Environment Protection Committee meeting between 7 and 11 April 2025 (MEPC 83) and has introduced domestic regulations on maritime fuels, technologies and energy sources to drive adoption of cleaner fuels such as hydrogen, electricity, and ammonia. The aim is to provide certainty to producers and suppliers of fuel and incentivise the switch away from fossil fuels.

Emissions pricing

Currently, the price of maritime fuels does not accurately represent the downstream impact of the associated GHG emissions and environmental impacts. The strategy includes expanding the UK Emissions Trading Scheme (ETS) to cover domestic maritime voyages from 2026. The government has recently consulted on the scope of UK ETS and comments are awaited. The UK also joined a coalition of states at MEPC 83 to push for a flat levy on carbon emissions from shipping.

Zero or near-zero emissions at berth

At present, almost half of UK domestic maritime emissions occur while vessels are at berth in ports. To address this, the government is considering requirements for zero or near-zero emissions from vessels while in port.

Supporting smaller vessels

Proportionate measures will be introduced to help smaller vessels decarbonise, driving the uptake of clean technologies in targeted subsectors. The initial focus will be on vessels with a clear route to decarbonisation, such as offshore wind vessels, whereas more difficult to decarbonise vessels may not be required until the mid to late 2030s.

Energy efficiency

Driven by existing measures from the IMO, increasing energy efficiency across the maritime sector is a key focus and the UK Maritime Decarbonisation Strategy makes a commitment to work with the IMO to identify and agree how energy efficiency measures can be updated and strengthened. 

The first phase of the strategy relies on existing IMO regulation to increase the efficiency of vessels between now and 2030.

In the second phase, with a focus on larger vessels, the UK will narrow the price gap with conventional fuels through expansion of the UK ETS to maritime from 2026 and an IMO pricing mechanism, such as a global levy, from 2027. It will also increase the use of low carbon and zero and near-zero GHG emission fuels with international regulation from 2027, with domestic regulation following, which will be informed by calls for evidence.

As matters stand, the only current directly effective legislative developments are the calls for evidence in respect of net zero ports and decarbonising smaller vessels, with new draft legislation to be geared around that evidence in due course.

We will provide updates as developments occur.

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