Policy & Compliance
The UK government has indicated that emissions from international aviation and shipping will be included in the UK’s Carbon Budget from 2033 Accounting for shipping emissions
I n April 2026, the UK government laid a draft Statutory Instrument (SI) before parliament to include emissions from international aviation and shipping within the UK’s carbon budgets. Under the proposal, the UK’s share of international aviation and international shipping (IAIS) will be included from the Sixth Carbon Budget, which runs from 2033- 2037, and all subsequent periods Carbon budgets are legally binding five-year caps on the maximum level of greenhouse gas (GHG) emissions that the UK can emit, designed to incrementally progress the UK towards its legally mandated goal to reach net zero GHG emissions by 2050. The UK currently calculates its share of IAIS emissions based on fuel bunker data from the National Atmospheric Emission Inventory (NAEI), rather than passenger or cargo metrics. Under the new proposal, if a containership refuels at a UK port with 8,000 tonnes of fuel, the resulting CO 2 e would be allocated to the UK’s national carbon budget. International fi rst If approved, the UK will become the first major economy to include international transport emissions in its national carbon budget. This marks a pivotal policy shift, whereby international freight is no longer treated as an outlier, but is instead embedded within the UK’s legal pathway to net zero. The changes are likely to bring air and ocean freight into sharper regulatory focus, increasing the likelihood of further policy intervention and operational scrutiny. Whilst this measure will not lead directly to additional costs, the announcement means that movement of goods by air and sea
are likely to be the focus of further policy intervention in the future. If further policy intervention occurs, the costs of compliance are likely to cascade through the supply chain. Members who have incorporated the BIFA Standard Trading Conditions (2025 Edition) within their contracts can rely primarily on Clause 20 as the mechanism to pass on environmental surcharges to their customers. However, to mitigate the risk of legal disputes and to maintain healthy commercial relationships, Members should clearly outline any potential environmental surcharges in all quotes and formal communications with their customer. Furthermore, the increased regulatory scrutiny on IAIS is likely to further drive an increase in customers requesting freight emission calculations. Forwarders should ensure that any freight shipment emissions calculation follows ISO 14083, which is the international standard
underpinned by the Global Logistics Emission Council (GLEC) Framework. Higher carbon pricing for air and sea freight may drive a shift in transport modes. Forwarders that can offer informed, multimodal advice will be well placed to add value in this new environment. Members can explore the advantages of modal shift via the ‘Introduction to Sustainable Logistics’ bitesize course on the BIFA portal. Landmark shift As the SI heads for debate in the coming months, BIFA will continue to track its development. The inclusion of IAIS emissions would signal a landmark shift in how the UK accounts for transport carbon. Forwarders sit at a critical juncture in the supply chain; therefore, they will need to navigate a more complex regulatory and pricing landscape, while also supporting their customers by offering more sustainable logistics solutions.
“ The inclusion of IAIS emissions would signal a landmark shift in how the UK accounts for transport carbon
June 2026 | 19
www.bifa.org
Made with FlippingBook Annual report maker