EU Emissions Trading System (ETS) | Combating Climate Change | Reducing Greenhouse Gas Emissions

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Information:

The ETS aims to significantly reduce emissions by 2030 and bring them to net zero by 2050.

All shortsea routes involving Interteam’s trades and vessels with a gross registered number of more than 5000 will be subject to the EU ETS from 01.01.2024.

Under the EU ETS, any shipping company with ships calling at or leaving ports in the EU or EEA will be required to comply. This means that shipping companies must buy emission allowances for each ton of CO2 to cover their CO2 emissions each year.

The amount of CO2 emissions will be limited and supply and demand will determine the price of emission allowances. As a result, allowances [European Emission Allowances (EUAs)] will increase in price over time.

For voyages between EU and non-EU countries (e.g. UK), emission allowances must be purchased for 50% of the distance between the two ports.

On short-sea routes between the EU and the UK, the ETS therefore only applies to 50% of the route for the time being. However, the UK is developing its own variant of the ETS, which is expected to be introduced in the coming years.

Roll-out schedule (EU):

In the first step, shipping companies will go through a phase-in period. In 2024, allowances for 40% of total emissions must be purchased. This will increase to 70% in 2025 and finally reach 100% in 2026.

Projected costs:

The costs of the ETS, joint compliance and climate change mitigation, and GHG emission reductions will have to be absorbed by the market. The surcharge introduced is not a means to make a profit! The cost per tonne of carbon dioxide can be tracked*. A monthly surcharge will be introduced from 01.01.2024. Final cost calculations are currently being made. Further information will follow.

Further information:

*Cost per tonne of carbon dioxide: https://ember-climate.org/data/data-tools/carbon-price-viewer/

Extension of the EU Emissions Trading Scheme to maritime transport: https://climate.ec.europa.eu/eu-action/transport/reducing-emissions-shipping-sector/faq-maritime-transport-eu-emissions-trading-system-ets_en#extension-of-the-eu-emissions-trading-system-to-maritime-transport