Introduction of carbon pricing from 2024 Starting in 2024, all shipping firms moving cargo exceeding 5000 gross tonnage must acquire and submit 1 European Union Allowance (EUA) to the EU annually for every ton of reported CO2 emissions.
The cost of EU ETS allowances (EUA) fluctuates based on market demand, presently standing at EUR 85 per ton of CO2 as of September 2023 (according to EUA Daily Future).
To ensure a smooth transition to the Emission Trading Scheme, shipping companies will undergo a phased approach over three years. They are obligated to purchase and surrender EUAs for a portion of their total emissions, beginning with 40% in 2024, followed by 70% in 2025, and ultimately reaching 100% by 2026.
Emission Trading Scheme
What is EU ETS? The EU ETS, set to launch on January 1st, 2024, marks a significant milestone in Europe's commitment to combatting climate change. With the shipping industry facing stricter emissions regulations, P&O Ferrymasters is prepared to adapt and actively contribute to reducing maritime emissions.
In the fight against climate change, the EU is introducing the EU Emission Trading Scheme (ETS) as part of the Fit for 55 plan, aiming to cut greenhouse gas emissions by 55% of 1990 levels by 2030 and achieve carbon neutrality by 2050.
The EU ETS seeks to diminish fossil fuel usage and promote investments in alternative fuels and efficiency. For more details on the EU ETS, click HERE.
ETS applies to:
100% of emissions from voyages within the European Economic Area (EEA) 50% of emissions from voyages starting or ending outside of the EEA 100% of emissions when vessels are at berth in EEA ports.