What is the EU ETS and how does it affect shipping?
"The EU Emissions Trading System (EU ETS) is a cap-and-trade regulatory framework that places a direct cost on carbon emissions. Since January 2024, shipping has been included within its scope.
Shipping companies operating voyages to, from, or within the European Economic Area must surrender carbon allowances (EUAs) corresponding to a defined share of their CO₂ emissions. The inclusion is phased: 40% of emissions in 2024, 70% in 2025, and 100% from 2026.
The practical impact is significant: EU ETS compliance increases operational costs, affects voyage economics, and is reshaping investment decisions around vessel types and fuel strategies. For lenders and investors, EU ETS exposure is increasingly a standard component of due diligence."
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What role does digitalization play in the shipping industry?
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How does regulation impact the shipping industry?
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What are market forecasts in shipping based on?
