After negotiations between the EU Parliament, EU commission and EU council, the European Parliament on 18 April 2023 approved an amendment to the EU Emission Trading System (ETS) scheme which includes the Maritime industry in the ETS Scheme. The amendment still requires final signoff by national representatives of each individual country, which is expected to happen in the following weeks.
The implementation of the EU Emissions Trading Scheme (EU ETS) will require shipping companies to pay for emissions caused by ships carrying cargo or passengers from 1st January 2024. First established in 2005, the EU ETS has for many years applied to aviation. The inclusion of the shipping industry into the EU ETS Scheme means that also the shipping industry will need to ensure compliance with the EU ETS regulations as from January 2024. In respect of that year, shipping companies will be required to surrender EU emissions allowances (“EUA’s”) covering 40% of their voyages within the EU and 20% of emissions on voyages into or out of the EU. These percentages will increase incrementally over 2024-2026 to reach 100% of emissions on voyages within the EU and 50% of voyages into or out of the EU.
With the EU ETS Scheme the EU aims to achieve its Fit for 55 climate target, aims to reduce greenhouse gas emissions by 55% by 2030.
For a further description of the implications of the EU ETS Scheme for shipping we refer to the summary of Reed Smith issued earlier, accessible through following link: