The European Union’s regulatory measures, including the Emissions Trading System (EU ETS) and Fuel EU Maritime, are set to significantly impact the maritime industry, especially tankers, by 2035. These regulations aim to reduce greenhouse gas emissions but come with substantial compliance costs.
Rising Costs of EU ETS and Fuel EU Maritime
By 2030, the EU ETS will cost the global tanker fleet over €2 billion, based on current emissions levels. The costs from the Fuel EU Maritime initiative are projected to surpass €1 billion in 2030 and reach €2.6 billion by 2035. These escalating costs aim to bridge the price gap between fossil fuels and zero-carbon alternatives.
Impact of Fuel EU Maritime Penalties
Fuel EU Maritime penalties are expected to increase significantly, with fines rising from $65 per tonne of very-low sulphur fuel oil (VLSFO) in 2025 to $380 per tonne by 2035. This sharp increase is part of the EU’s strategy to encourage the use of cleaner fuels and reduce the shipping industry’s carbon footprint.
Industry-Wide Financial Implications
A report by OceanScore predicts that the entire shipping industry could face €1.35 billion in fines next year, with the container shipping segment bearing the brunt. These costs highlight the financial challenges that the industry faces as it transitions towards more sustainable practices.
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Source: Port News
