The EU parliament has now approved of new environmental measures, one of which is to include shipping in the EU ETS. It will now move onto negotiations with member states to finalise the new legislation.
The main features of this new regulatory package are:
- Shipping to be included in the ETS by 2024 (vessels above 5000 gross tonnage).
- Increase 2030 greenhouse gas reduction target from 61% to 63% from 2005 levels.
- Revenues from ETS to be used exclusively for climate action in EU and member states.
Shipping emissions
All maritime emissions will have to be reported and traded in the EU ETS by 2027, subject to some mitigating factors.
Internal EU shipping (EU port to EU port) – 100% emissions coverage by 2024
External EU shipping (loading or discharging in an EU port) – 50% emissions coverage by 2024, 100% from 2027.
75% of the revenues from the trading of allowances in the EU ETS will be put into an Ocean Fund to support the green transition of the EU maritime sector
Contact
Kieran Batterbury | KieranB@freightinvestor.com | (+44) 207 090 1120
Huilian Fan | HuilianF@freightinvestor.com | (+44) 207 090 1120
Theo Goulios | TheoG@freightinvestor.com | (+65) 6535 5189