At the dawn of 2024, shipping companies warned that they would apply theoverloads on all affected containersby the European Union Emissions Trading System (EU ETS). These overloads will vary depending on the companies and the nature of the containers (dry or reefer) and should be reviewed quarterly.

Launched in 2005 to help reduce greenhouse gas (GHG) emissions from the most emitting sectors, this European regulation expanded to include the maritime transport sector in May 2023 (Regulation (EU) 2023/957). In line with the European targets of the Green Deal (carbon neutrality in 2050) and Fit for 55 (intermediate target for a 55% reduction in GHG emissions from 1990 by 2030), the EU ETS is based on the polluter pays principle. Imposing GHG emission ceilings (CO2 from 2024 and then nitrous oxide and methane from 2026), it will require companies to submit a monitoring plan that must be certified by an auditor, to report their emissions and to purchase an equivalent amount of allowances on the EU ETS market (1 tonne CO2 = 1 ETS quota). Those issuing less than their quotas will also be able to sell or exchange them. By 2024, 40% of reported emissions will have to be converted into allowances. This figure will rise to 70 per cent by 2025 and then to 100 per cent by 2026.

As a first step, will be concernedall commercial vessels of 5 000 gross tonnage or more entering EU ports. This gauge should be revised downwards in the coming years to include more and more vessels except the smallest (less than 400).

The EU ETS covers:

• 100% of the emissions of journeys between two EU ports and at dockside in an EU port,
• 50% of emissions from travel starting or ending outside the EU (the third country remains free to take measures for the remaining share of emissions).

It is estimated that in 2024 over $3.2 billion and up to $9.1 billion in 2026 will be required for shipping companies to comply with the EU ETS. This will push ships towards more sustainable technologies to reduce their environmental footprint.

To go further...

• Sales Administration (SDA) Subcontracting Export
• Import/export flow management (air & maritime)
• Diagnosis of international logistics flows

Thanks to ourGlobal Supply Chain Management Experts, move from a transport policy at least so-called to a real supply chain strategy efficient, secure and efficient!