April 18, 2023
Shipping’s inclusion in the European Union’s Emissions Trading System (EU ETS) is now final and will bring carbon pricing to the maritime sector from January 2024. We present the most important elements of the inclusion – from a charterer’s perspective.
In July2021 the European Commission presented a large revision of the EU ETS directive and the inclusion of shipping was one of many major amendments. Since then, the European Parliament and the Council of the European Union have suggested several amendments to the Commission's proposal to include shipping in its carbon trading scheme. Mid December, EU institutions managed to come to an agreement and today the revision was finally adopted by the EU Parliament.
From the charterer's perspective these are the most important elements of the inclusion of shipping in the emissions trading system.
The inclusion of maritime transport in the ETS is expected to lead to an increase of 80 to 100 million tons of CO2 or million EU allowances(EUA) in the European cap and trade system. The EUA price has traded at around 90 euros lately, however the price is volatile and spot prices can be found at the European Energy Exchange.
The texts have to be formally endorsed by Council. They will then be published in the EU Official Journal and enter into force 20 days later.