On the 18th of December EU decided that ETS (Emission Trading System) should be extended and cover the maritime sector. Doing this is essential to the #FitFor55 package and the EU's strategy to reduce GHG emissions by 50% by 2030.
In principal ship operators with vessels above 5000 GT, regardless of flag, will now have to pay for their GHG emissions. The system will gradually extend from 2024 to 2027: Shipping companies will pay for 40 % of their emissions in 2024, 70 % in 2025 and 100% in 2026. ETS will only include CO2 in the start but cover methane and NOx from 2026.
Incentivizing investments in zero emission technology
The goal is to use the market and its mechanism to drive the maritime sector and shipping in a greener direction. The most important tool is to cap the number of carbon credits available in the market. As a result, the EU expect that a carbon market is created where supply and demand will come into play, "creating" a market price for the carbon credit.
The higher the prices, the stronger incentive to invest in technology that reduces emissions. Over time, fewer carbon credits will be available in the market, hopefully driving down emissions as we close in on 2030.
All voyages to, from and within the EU will be affected. It is also agreed to evaluate the integration of vessels between 400 to 5.000GT in the ETS in 2026.
As a system integrator, our role is to find the optimal solution for YOUR vessel. Not only cutting emissions from vessel operation but reducing fuel costs and OPEX on the way.
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