EU Emissions Trading System (ETS) Implementation – Effective 01st January 2024
EU Emissions Trading System (ETS) Implementation – Effective 01st January 2024
19/12/2023
The European Emission Trading System (EU ETS) is a programme launched in 2005 to reduce greenhouse gas emissions. It is part of a legislative proposal with the main goal of achieving the EU’s market climate neutrality by 2050.
The parties involved will expand the scope of the scope of the EU ETS effective January 01st 2024. This gradual phase in programme will be expanded year by year and relate to cargo ships travelling within and to and from the European Economic Area (EEA) and will be subject to the EU ETS regulations as follows: –
2024: 40 % of the total emissions will be subject to EU ETS.
2025: 70 % of the total emissions will be subject to EU ETS.
2026 and onward: 100 % of the total emissions will be subject to EU ETS.
Given the costs associated with the EU ETS will be significant, effective January 01st 2024, this cost will need to be recovered as part of a framework for service routes (East and Westbound) between Northern European, Mediterranean regions and hub ports in North and Southeast Asia connecting to our Pacific service framework.
To/from North Europe, Scandinavia – North & Southeast Asia Hub Ports
| 20 ALL | 40 ALL | 20 REFER | 40 REFER |
| EUR 17 | EUR 34 | EUR 26 | EUR 51 |
To/from West & East Mediterranean North & Southeast Asia Hub Ports
| 20 ALL | 40 ALL | 20 REFER | 40 REFER |
| EUR 10 | EUR 20 | EUR 15 | EUR 30 |
The tariff quantum above will be effective January 01st 2024 and will be subject to quarterly reviews which will be variable to respond to the latest EU Allowances (EUA’s) equivalent to the emissions of our pre and post carriage carrier’s submissions. For FMC related ports, effective date will be January 19th 2024.
Please contact your local Swire Shipping representative for more information.