The largest regional green regulations in the history of shipping came into effect yesterday with the industry included in the European Union’s emissions trading system ( EUETS), a market-based measure that sets a cap on allowed emissions.
From yesterday, vessels visiting EU ports will be required to offset their applicable CO2 voyage emissions through the purchase of an equivalent number of EU Allowances (EUAs).
Clarksons Research has put together a graph estimating EU ETS costs for certain ship types on the basis of this year’s average EUA price of $90 per tonne of CO2 and 2022 trading patterns.
The data shows that for a VLCC heading from Ras Tanura to Rotterdam EU ETS costs will be around $200,000 per voyage next year equivalent to 4% of today’s freight cost, increasing to $0.5m and 10% in 2026 when the regulation is fully phased in at 100%.
The new regulations were branded as “bullshit” and “a complete waste of effort” by one of Greece’s largest shipowners, George Procopiou, while speaking at an event in Cyprus in October.
Tags: CO2, eu, Shipping
Recent Posts
Japan Launches Major R&D Project to Advance Shipbuilding with Alternative Fuels
EU Adopts Emissions Standards for Low Carbon Hydrogen to Bolster Clean Energy Market
Trafigura to Implement ZeroNorth’s AI Platform Across Global Fleet
Cochin Shipyard to Construct eCap Marine’s Hydrogen-Fuelled SeaShuttles for Samskip
India Strengthens Hydrogen Economy with Hyundai-IIT Madras Innovation Centre
India Showcases Green Maritime Ambitions at London Investment Meet
Hong Kong Launches Incentive Scheme to Promote Green Maritime Fuel Bunkering
MSC Hosts Sustainability Experience in Antwerp for Global Supply Chain Leaders