The EU Emissions Trading System was established in 2005 to promote the reduction of greenhouse emissions through a cost effective and economical way. It limits the amount of greenhouse gas emissions from energy intensive industry, energy producers and airlines. The emissions right will be limited by the maximum level set by the EU, and companies either receive or may purchase single rights. The maximum level of emissions will be reduced over time, thus gradually reducing the level of emissions.
EU ETS has so far covered the production of electricity and heat, energy intensive industry, as well as commercial aviation within the EU Economic Area. In 2022 a decision was made to gradually (2024-2026) extend the ETS to cover sea transports. This means that the shipping companies must buy emissions rights while they are investing in alternative fuels and new technologies. The funds received from selling emissions rights will be used for The European Green Deal. These are the costs that shipping companies will be passing onto their customers.
2024: shipping companies must purchase emissions rights for 40% of their emissions
2025: rights must be purchased for 70% of the emissions
2026 onward: 100% of the emissions must be under Emissions Trading System
Shipping companies will implement the new ETS surcharges from 1.1.2024 onwards. This will be updated every 3 months. As this is a supplement regulated by the EU, we will be forced to transfer this cost to our customer prices.