Scottish ports are entering a period of significant transformation. Once viewed primarily as gateways for trade, they are now becoming essential national infrastructure for Scotland’s energy transition and industrial strategy. The shift is accelerating as the maritime sector prepares to be included in the UK Emissions Trading Scheme (UK ETS), set to come into effect on 1 July 2026. The new landmark regulation aims to reduce greenhouse gas emissions from maritime operations, indirectly requiring ports to adopt low-carbon infrastructure and cleaner operational practices.
The UK ETS formed jointly by the various UK central and devolved governments, replaced the EU ETS Scheme post Brexit in 2021, which in 2024 extended its coverage to ports in Europe with a phased implementation maximised in 2027. Operating on a ‘cap and trade’ principle, it gradually lowers the emissions cap for cover sectors, requiring maritime operators to monitor, report, and offset their emissions through allowances. These obligations introduce new environmental and compliance expectations that will shape how ports modernise and operate going forward.
Legislative basis
The UK ETS is underpinned by the Climate Change Act 2008, with its operational framework established under the Greenhouse Gas Emissions Trading Scheme Order 2020. On 13 January 2026, the Government laid “The Greenhouse Gas Emissions Trading Scheme (Amendment) (Extension to Maritime Activities) Order 2026” before Parliament. When it comes into force on 1 July 2026, this amendment will formally extend the UK ETS to include the maritime sector.
Why UK ETS Matters for Ports
The UK ETS will apply to vessels of 5,000 gross tonnage (GT) and above, covering emissions from domestic voyages and any time spent at berth in UK ports, whether alongside or at anchor. Ship owners (or operators as notified to the regulator) will be required to submit Emissions Monitoring Plans, report annually to the appropriate regulator (SEPA for owners/operators registered in Scotland and the Environment Agency if not UK based), and surrender allowances by 30 April each year. Failure to comply could result in financial penalties and reputational risks.
For ports, this creates both pressure and opportunity. They will increasingly be expected to support operators in meeting their obligations, which may require investing in infrastructure that reduces emissions at berth and assists operators in monitoring their emissions, a critical step toward meeting climate targets and avoiding costly carbon allowances.
Under the UK ETS, compliance is based on allowances, which are tradable permits granting the right to emit one tonne of CO2 equivalent (including CO2, methane, and nitrous oxide). Ports are not typically direct emitters under the scheme but they can play a strategic role by facilitating compliance for operators, such as offering green shore power. While the UK ETS application raises concerns over competition with foreign operators, it also creates an incentive for ports to invest in low-carbon infrastructure. By helping shipping lines reduce emissions (and therefore allowance costs), ports can strengthen their competitive position.
The UK and EU authorities as well as the UN International Maritime Organization (IMO) continue to liaise on application to international voyages. The EU ETS scheme is raising the bar across Europe affecting ship owners and operators regardless of nationality, applying to 50% of emissions where a journey starts or ends out with the EU, and 100% for journeys within the EU. A UK ETS consultation is due to close on 20th January 2026 but is expected to mirror the above EU approach in turn thus dealing with double counting/reporting issues on international routes. SEPA consultation on its adjustments to deal with maritime emissions closes on 24 February 2026.
UK and EU ship operators will be required to implement increased Monitoring, Reporting and Verification (MRV) activities as required by the UK and EU schemes, and in addition alignment with the IMO targets as they progress.
Shore Power, Strategic Partnerships and Funding
Scottish ports are beginning to scale up shore power as a practical and immediate step toward maritime decarbonisation. Leading the way is the Port of Aberdeen, which has launched Scotland’s largest maritime decarbonisation project. Eight berths in its North Harbour are now equipped with shore power connections, enabling vessels to plug into renewable electricity rather than rely on diesel generators.
Montrose Port Authority is taking a similar approach, partnering with Plug Shore Power Ltd to install shore power facilities across several berths. This investment positions Montrose as a frontrunner in Scotland’s race toward carbon neutrality, allowing offshore energy vessels to shut down engines and connect to grid power, reducing fuel consumption, noise, and emissions.
These developments are underpinned by collaborative partnerships. Aberdeen has collaborated with PowerCon to deliver this technology, while Montrose works with SSEN for grid connectivity. Such collaborations between ports, technology providers and utilities companies are becoming increasingly vital to ensure reliable and scalable shore power solutions.
Funding remains a critical enabler. Grants from Innovate UK and the Department for Transport under ZEVI have been instrumental in supporting early adopters. As compliance deadlines approach, more ports are expected to pursue similar funding routes to accelerate infrastructure deployment.
Is ‘Green Hydrogen’ part of the solution?
Lloyd’s Register has recently published ‘Fuel for Thought: Hydrogen’ an in-depth examination of hydrogen’s role in maritime decarbonisation, which was recently highlighted by Hydrogen Scotland. The report explores hydrogen from production and supply through to onboard use, and highlights its advantages alongside the safety, infrastructure and cost challenges that currently restrict its adoption.
Green hydrogen offers the potential for zero tank-to-wake greenhouse gas emissions when used in fuel cells and is expected to play a key role for e-fuels such as ammonia and methanol. As the maritime sector faces growing pressure to reduce greenhouse gas emissions, hydrogen represents one of several pathways that could support long‑term decarbonisation.
Exemptions from this immediate implementation
Several vessel categories will be exempt from the 2026 implementation including vessels below 5,000 gross tonnage (in line with EU ETS), international voyages (at least for the first reporting period to 31 December 2026), government non-commercial vessels such as ferries to Scottish islands, fishing vessels, certain ‘offshore’ shipping, and activities in Crown Dependencies/Overseas Territories. Although these groups are exempt from the immediate requirements, operators should anticipate potential future expansion of the scheme to smaller vessels and possibly to international voyages.
Ports in turn will need to stay informed on upcoming consultations and developments as the UK ETS continues to evolve.
Scottish ports are not merely adapting to new legislation; they are seizing the opportunity to lead in maritime decarbonisation. Through strategic investment, innovative partnerships, and proactive policies, Scotland’s ports are charting a course toward a cleaner, more sustainable future for the shipping industry.
*Originally featured in The Herald Scotland on 26 January 2026: Landmark regulation will mark a power shift for ports across Scotland | The Herald
