When the European Commission presented the “Fit for 55” package in July 2021, including the maritime sector in the European Emissions Trading System (ETS) was one of the measures suggested to decarbonise the maritime industry. The ETS suggestion that the Commission presented in July has the potential to greatly influence freight rates. It is currently being processed in the EU and new suggestions made by the European Parliament’s rapporteur Peter Liese could influence the rates even more.
Below we compare the EU Commission’s current version to the new suggestions made by Liese and demonstrate the different carbon cost impact of the the two versions.
Illustration EU Cost
If the new suggestions are implemented, it would result in a substantially higher carbon cost of both internal and global EU voyages. Liese's suggested acceleration of the phase-in period could make freight rates of an MR NY-Antwerp increase by USD 82 500 in 2025. According to the Commission's current suggestion they would reach the same level in 2026. If the suggestion to include 100% of emissions from global EU voyages is implemented the carbon cost could reach USD 157 500 in 2029.
The Liese suggestions that would influence the maritime carbon cost the most
The carbon price is based on the average February 2022 settlement price of the European Emission Allowances February in the EEX spot market (90,73 EUR EUR) and on a EUR/USD exchange rate of 1.13.
Emissions are calculated using The Siglar Carbon Estimator.
Emissions from the internal EU voyage example is based on a modern MR vessel (max 5 years) loading 37000 tonnes of gasoline in Riga, discharging in Amsterdam, ballasting from Le Havre. It includes emissions from ballast leg, laden leg and port stay in Riga (2 days) and Amsterdam (2 days). Total and eligible emissions from entire voyage: 700 tonnes of CO2.
Emissions from the extra-EU voyage example is based on a modern MR vessel (max 5 years) loading 37000 tonnes of gasoline in Antwerp, discharging in New York, ballasting from NY. Total emissions include emissions from ballast leg, laden leg and port stay in Antwerp (2 days) and New York (3 days). Emissions from loading and discharge in non-EU ports are not eligible for EU ETS. Total emissions from entire voyage: 1700 tonnes of CO2. Eligible emission from voyage: 800 tonnes of CO2 in 2026, 1550 tonnes of CO2 in 2029.
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