EU shipping emissions reached their highest levels since 2018 last year, according to a T&E analysis of official EU MRV data. Emissions jumped by 13% despite a downturn in EU-related seaborne trade, with the disruption of trade through the Red Sea leading to longer routes. T&E emphasizes that this record pollution highlights the importance of the EU’s Emissions Trading System (ETS) for shipping and calls for its expansion.
Drivers of Increased Emissions
- Container Ships were the primary contributors to the increased emissions, showing a 46% rise. This is attributed to:
- An 18% increase in the average distance sailed (likely due to longer routes avoiding the Red Sea).
- A 3% average growth in operational speeds. Since a 1% increase in speed can result in a 3% growth in emissions, this had a significant impact.
- An increase in the number of ships required to service the longer routes.
- Trade Disruption: T&E noted that even with trade declining, disruption and subsequent longer routes can severely increase shipping pollution.
EU ETS Effectiveness and Recommendations
T&E deems the EU ETS for shipping, now in place for almost two years, to be effective, noting an approximate 99% compliance rate in its first year. The organization asserts that the upcoming review of the ETS is an opportunity to strengthen and extend the system:
- Crucial Carbon Price: T&E states that the carbon price from the ETS is more crucial than ever, especially given the “inadequate IMO deal being shelved.”
- Call for Expansion: The organization calls for the ETS to be expanded to include smaller vessels to ensure all polluters pay their fair share.
Top Emitters and Fossil Fuel Transport
- MSC remains the largest emitter in the EU, responsible for 15.6 million tonnes of CO2.
- Sectoral Emitters (Outside Container Lines):
- Grimaldi Group was the largest overall emitter outside container lines at 3.8 Mt.
- Carnival had the highest emissions among cruise companies at 2.5 Mt.
- Fossil Fuel Transport: Fossil fuel carriers continue to account for around 20% of all EU shipping emissions, a level similar to 2018.
- Crude Oil transport emissions rose to 2019 highs.
- Emissions from LNG carriers grew following Russia’s invasion of Ukraine but did decrease in 2024.
T&E concludes that ending dependency on fossil fuels would eliminate a significant chunk of shipping emissions, but decarbonizing the remaining over 80% will require substantial efforts in efficiency and the adoption of green hydrogen-based fuels.
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Source: Transport & Environment
