EU ETS - EMISSION TRADING SCHEME
WE ARE READY TO PARTICIPATE IN REDUCING MARITIME EMISSIONS
EU ETS in Shipping
Introduction of carbon pricing from 2024
From 2024 all shipping companies transporting cargo above 5000 gross tonnage are required to purchase and submit 1 European Union Allowance (EUA) to the EU annually for every 1 ton of reported CO2.
The price of EU ETS allowances (EUA) varies based on market supply and demand - currently at EUR 85 per ton of CO2 for September 2023 (according to EUA Daily Future).
Shipping companies will have a three-year phase-in period to transition smoothly to the ETS. During this period, they will be required to purchase and surrender EUAs for a portion of their total emissions, starting with 40% in 2024, followed by 70% in 2025, and eventually 100% in 2026.
EMISSION TRADING SCHEME
What is EU ETS
The EU ETS, scheduled for implementation on January 1st, 2024, signifies a pivotal moment in Europe's commitment to addressing climate change. As the shipping industry faces stricter emissions regulations, Unifeeder is poised to adapt and play an active role in the reduction of maritime emissions.
To address climate change, the EU is implementing the EU Emission Trading Scheme (ETS), which is part of the Fit for 55 plan to reduce greenhouse gas emissions by 55% of 1990 levels by 2030 and achieve carbon neutrality by 2050.
The EU ETS aims to reduce the use of fossil fuels and encourage investment in alternative fuels and efficiency. More information about the EU ETS can be found HERE.
ETS applies to:
- 100% of emissions from voyages within the European Economic Area (EEA)
- 50% of emissions from voyages starting or ending outside of the EEA
- 100% of emissions when vessels are at berth in EEA ports.
"We will continue to explore advanced technologies such as emission-reducing ship designs, alternative fuels, and energy-efficient vessel operations to minimize our carbon footprint and enhance our competitiveness within the EU ETS framework. ."
Our Decarbonization Goals
Our reduction targets are based on 2019 Greenhouse Gas (GHG) Emissions.
We will reduce our GHG emissions by at least 25%. This will be achieved through a fleet efficiency program focused on reducing fuel consumption, increasing the use of biofuels, and deploying new, fuel-efficient vessels.
We will offer our customers climate-neutral transport solutions. GHG emissions will be further reduced by at least 75%. This is to be achieved by using a mix of renewable fuels. The remaining 25% of greenhouse gases must be offset through compensation programs.
We will be net-zero with no new fossil GHG emissions.