Historical background and importance of the EU ETS

21. 12. 2024

The European Emissions Trading Scheme (EU ETS), first introduced in 2005, is the world’s first and largest carbon market. The main objective of the scheme is to reduce greenhouse gas emissions and encourage the transition to more sustainable energy sources through economic incentives. The EU ETS covers a wide range of sectors, from industrial production to aviation and, more recently, maritime transport. In 2024, a significant change was made when the scheme was extended to maritime transport, which brings new challenges and opportunities for the sector.

Emission allowance prices on the rise

The price of emission allowances under the EU ETS reached an all-time high of over €100 per tonne of CO₂ in February 2023. Although there was some decline during 2023, prices are rising again in 2025, reflecting increased demand for allowances. This growth is partly due to the extension of the scheme to new sectors, including shipping, which increases pressure on ship operators to reduce their emissions and adapt to the new regulations.

Maritime transport under the magnifying glass

From January 2024, the EU ETS covers CO₂ emissions from large ships (over 5,000 gross tonnage) calling at EU ports. The scheme covers 50% of emissions from journeys starting or ending outside the EU and 100% of emissions between EU ports. These measures aim not only to reduce emissions but also to encourage shipping companies to seek more energy-efficient and environmentally friendly solutions, such as alternative fuels or route optimisation.

Monitoring, reporting and verification of emissions

A key part of the EU ETS is the monitoring, reporting and verification (MRV) process. For shipping companies, this means monitoring their emissions, preparing annual reports and submitting them to the competent authorities. This process is essential to ensure transparency and accuracy of data and allows the system to operate efficiently. In addition, the European Commission provides tools and templates to facilitate the fulfilment of these obligations.

Challenges for shipping companies

The inclusion of shipping in the EU ETS brings a number of challenges, especially for smaller shipping companies that have to adapt to the new rules. The purchase of emission allowances represents a significant financial cost, which may affect their competitiveness. On the other hand, investing in green technologies and fuels can bring savings and increase the sustainability of their business in the long term.

Impact on global objectives

Maritime transport is responsible for around 2.9% of global CO₂ emissions, making it a key sector in the fight against climate change. Extending the EU ETS to this sector is an important step towards achieving the Paris Agreement and the EU’s climate neutrality targets by 2050. According to experts, this change can serve as an inspiration for other regions and contribute to the introduction of global measures to reduce emissions in maritime transport.

Future perspectives and expectations

Further increases in the price of emission allowances and the introduction of new rules and regulations are expected in the coming years. The European Commission plans to extend the scheme to other sectors and introduce further measures to promote sustainable development. For maritime transport, this means not only new challenges but also opportunities to innovate and strengthen its role in global climate protection efforts.



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