07 Dec Europe Approved Emissions Trading System (ETS)
Europe has officially sanctioned the ETS system, which will require shipping organisations to pay a surcharge on greenhouse gas (GGH) emissions. These funds will be directed into the maritime sector in order to fund its transition to alternative energy sources via the EU Innovation Fund.
The surcharge will be levied quarterly on cargo owners from the first quarter of 2024, with shipping required to pay for allowances covering 40% of GHG emissions in 2024, rising to 70% in 2025 and 100% from 2026.
To date several shipping lines have confirmed that these costs will be passed on in the form of a standalone surcharge that will apply to all shipments that will be subject to the EU ETS.