The European Union (EU) has officially integrated shipping into its Emissions Trading System (ETS) following the passage of the legislation, as confirmed by the European Council, as reported by Ship & Bunker.
Fit for 55 strategy
This move marks the first time that shipping emissions are included in the scope of the EU ETS. Shipping companies will receive allowances for their emissions, with a phased implementation plan that begins with 40% of verified emissions from 2024, 70% from 2025, and 100% from 2026. The EU ETS operates as a carbon market that trades emission allowances for energy-intensive industries and the power generation sector. The regulation of shipping emissions is part of the EU’s ‘Fit for 55’ strategy, aimed at achieving the 2030 climate targets.
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Source: Ship & Bunker