Contact Us

Shipping & The EU ETS

EU Regulations and Implications

On 1 January 2024, the European Commission and Council included shipping in the EU ETS.

    VOYAGES COVERED 

    Shipping companies* now have a compliance mandate to cover their fleets’ emissions which requires them to purchase EU Allowances (EUAs):

      • 100% of a vessel’s emissions from voyages between EU and EEA ports.
      • 50% of a vessel’s emissions from international voyages between an EU/EEA port and a non-EU/EEA port.

    *Note on ‘Shipping Company’ definition: The person or organisation responsible for EU ETS compliance is the shipping company, defined as the ship owner or any other organisation or person, such as the manager or the bareboat charterer, that has assumed the responsibility for the operation of the ship from the ship owner and has agreed to take over all the duties and responsibilities imposed by the International Management Code for the Safe Operation of Ships and for Pollution Prevention’.

    Phases

    The EU is implementing a phased-in approach, which will require shipping companies to purchase and subsequently surrender allowances:

    2024

    40% of verified emissions

    2025

    70% of verified emissions

    2026

    100% of verified emissions and each year onward

    Facts & Figures

    • Global Shipping emits around 940 million tonnes of CO2 annually, reportedly 2.5% of global greenhouse gas (GHG) Source: PWC
    • Shipping was included in the EU ETS to help the EU reach the “Fit for 55” package goal of reducing GHG emissions by at least 55% by 2030 Source: European Commission

    Contact us:

    Please contact IncubEx and EEX to find out how to get set up and ready for the upcoming compliance requirements. 

    Contact

    More Information:

    For more information, resources, and FAQs on Maritime Sector, please visit our partners at EEX. 

    Visit EEX Website

    Key benefits of trading on EEX

    For shipping participants, EUA contracts on EEX offer a number of advantages, including:

    • Emissions Spot Market Margining
        • No requirement for an upfront initial margin payment
        • Margin offsets are available between Carbon, European Power and Gas Markets
    • EUA as Collateral (Margin Credit) – EUAs can be used to reduce the initial margin requirements for:
        • EUA Spot Market (unrestricted number of certificates used across power and gas emissions)
        • EUA Derivatives Market (up to a covered net short-position in EUA futures)
    • Expiry dates & delivery times of EEX contracts are aligned with other exchanges
        • In addition: T+0 delivery possible via the same-day transfer service, regular T+1 request for transfer can be pre-dated to current day
    • Competitive fee structure

     

    • Customer focus through account managers in London, Leipzig, Paris, Milan, Madrid, Chicago, Oslo

    Contact us:

    Please contact IncubEx and EEX to find out how to get set up and ready for the upcoming compliance requirements. 

    Contact

    Key benefits of trading on EEX

    For shipping participants, EUA contracts on EEX offer a number of advantages, including:

    • Emissions Spot Market Margining
        • No requirement for an upfront initial margin payment
        • Margin offsets are available between Carbon, European Power and Gas Markets
    • EUA as Collateral (Margin Credit) – EUAs can be used to reduce the initial margin requirements for:
        • EUA Spot Market (unrestricted number of certificates used across power and gas emissions)
        • EUA Derivatives Market (up to a covered net short-position in EUA futures
    • Expiry dates & delivery times of EEX contracts are aligned with other exchanges
        • In addition: T+0 delivery possible via the same-day transfer service, regular T+1 request for transfer can be pre-dated to current day
    • Competitive fee structure

    • Customer focus through account managers in London, Leipzig, Paris, Milan, Madrid, Chicago, Oslo.

    ADDITIONAL RESOURCES

    î‚’

    PDF

    Shipping &
    the EU ETS

    

    Webpage

    Environmental Products
    on EEX

    

    WEBPAGE

    EU ETS Market
    Background

    This page is for illustrative purposes only. For official contract and trading information, please visit EEX