Agreement reached on EU ETS - Shipping affected
The new rules include a gradual phase-in of maritime emissions?as follows:
The deal also stipulates that 50%?of journeys to and from Europe will be covered by the ETS, in addition to?100% intra-EU and in port.
?Negotiators moreover agreed to include?non-CO2?emissions (N2O and CH4) in the MRV?from 2024, and then?in the ETS from?2026.
?In terms of ship size,?vessels above 5000?GT will be covered by the?EU ETS?from the very beginning. Large offshore service vessels?above 5000?GT?are included in the MRV?from 2025 and in the EU ETS from 2027. Smaller?general cargo vessels and offshore service vessels between 400?GT?and 5000?GT?will be included in the MRV from 2025, with a?review?clause?in 2026 on their potential inclusion in the EU ETS. At the end of 2024, there?will be an additional?review of?the potential inclusion of other small vessels?in the?MRV.
?The agreement also includes derogations for?outermost?regions,?small island?connections within a Member State?and?ice-class?ships. Anti-evasion safeguards?will be put in place?to?counteract circumvention to non-EU transhipment ports within 300 nautical?miles of EU ports,?and?provisions on mandatory?transfer of costs to commercial operators?are?also included.
?Finally, revenue from the sale of 20 million emission allowances going to the?Innovation Fund are to?be earmarked for the?maritime sector, with the possibility for the?maritime sector to?also access other calls in the Innovation Fund.
?All of the elements above are included in the?general agreement?that has been reached, but?it might be worth pointing out that some?technical discussions are?still?ongoing. There are not yet any official documents confirming the details of the upcoming rules.
?Formal adoption of the final rules is expected in the first quarter of 2023.
SOURCE - Intertanko
More Info - https://climate.ec.europa.eu/eu-action/eu-emissions-trading-system-eu-ets_en#:~:text=The%20EU%20ETS%20is%20a,and%20remains%20the%20biggest%20one.