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10 billion euros the annual cost of the EU ETS


According to Mr. Eirik Nyhus, Director Environment Maritime at DNV, the EU ETS will lead to additional costs for industry of approximately up to €10 billion per year when fully implemented in 2026, due to the need to acquire carbon allowances to match emissions greenhouse gases . This will essentially increase the cost of marine fuel by around 50%.


The introduction of shipping into the Emissions Trading System (ETS) of the EU. it will be phased in for vessels over 5,000 gross tonnage over a three-year period. From 1 January 2024, it will require shipping companies to buy EU allowances (EUAs) to cover their annual emissions, with each EUA equivalent to 1 tonne of CO2. Companies will initially be responsible for 40% of CO2 emissions in 2024, rising to 70% in 2025 and 100% in 2026.


All emissions during voyages and port calls within the EU/EEA and 50% of emissions during voyages to or from the EU/EEA will be subject to the EU ETS. once fully implemented.


Annual emissions to be reported under the EU's MRV (monitoring, reporting and verification) regime. they will form the basis of a company's verified emissions report, which will determine the volume of allowances to be purchased and delivered to the Authorities by 30 September of each year following the reference year, with heavy penalties for non-compliance.


Mr Eirik Nyhus explains that apart from the legal compliance aspect, the EU ETS it will also have a direct financial impact on shipping companies, as they will start to create emissions obligations from 2024. Buying EUAs can be a significant expense for shipping companies, which is likely to have an impact on pricing and other terms of contractual agreements between interested parties, including charterers and cargo owners.


It is pointed out that based on today's oil prices, around €1.5 billion will be returned to Europe's shipping industry for the development of new technologies and ships with a smaller environmental footprint.





source: naftemporiki.gr



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