Offshore contractors’ role in decarbonisation, energy security and economic growth

Recent government consultations highlighted the importance of our sector’s engagement with politicians and policymakers to explain offshore contractors’ role and contributions . As the UK government considers expanding its Emissions Trading System (ETS) to include offshore vessels, we urge a common-sense approach to ministers – one that aligns seamlessly with the European Union’s ETS to avoid market distortions and unnecessary complications.

The UK offshore sector plays a vital role in energy security and the transition to net zero. Members accept the responsibility of reporting emissions and implementing measures to reduce their carbon footprint. Regulation must reflect the operational realities of the offshore marine industry, rather than imposing ill-fitting models designed for conventional shipping.

Offshore vessels engage in complex construction work for extended periods. Their emissions profiles vary depending on their mode of operation, not adequately captured by the standard ‘port call’ methodology used in emissions reporting.

The EU ETS will include offshore vessels from 1 January 2027, following a four-year period of data gathering and consultation. In contrast, the UK’s proposed ETS expansion relies on rough estimates of emissions. This risks placing UK-based operators at a disadvantage, creating uncertainty and the potential for double payments under two different systems.

“Fragmented regulations will only add to administrative burdens”

Bringing the UK’s implementation date in line with the EU’s would prevent market distortions and provide much-needed clarity. A premature move by the UK could incentivise operators to avoid UK ports, undermining both economic activity and environmental objectives.

The UK must ensure its rules do not diverge unnecessarily from EU standards. Fragmented regulations will only add to administrative burdens, complicate compliance, and risk making the UK a less attractive place to do business. Maintaining an open dialogue with EU regulators is crucial to preventing unnecessary duplication and inefficiencies.

The UK government must provide clear guidance on emissions reporting specific to offshore vessels. Without well-defined terms for ‘port call’, ‘voyage’, and offshore construction activities, compliance will become an administrative minefield.

A well-designed UK ETS should enable the industry to contribute to net-zero targets without disrupting critical energy infrastructure projects or driving business away from UK waters. By aligning with the EU’s timeline, ensuring regulatory consistency, and providing clear guidance, the UK government can create a fair and effective ETS that works for the offshore marine sector and is conducive to sustainable growth.

The need for regulation to reflect the realities of the offshore industry was reinforced as IMCA, with partner organisations, responded to the UK Maritime and Coastguard Agency’s proposed implementation of IMO’s Industrial Personnel Code through new regulations designed to provide minimum safety standards for ships carrying industrial personnel, as well as for the personnel, and addressing specific risks of maritime operations, including personnel transfer operations.

We believe these proposals create significant challenges for vessels operating in UK waters, and the new rules could lead to legal challenges from foreign-flagged vessels complying with IMO standards but not certified under UK-mandated codes.

The UK government must ensure policy is tailored to the unique nature of offshore work, otherwise, operators may face unrealistic compliance requirements, leading to unnecessary inefficiencies, increased costs, and a potential disincentive to operate in UK waters.