Shipping & The
EU ETS

Learn more about the proposal set to include shipping, an industry responsible for ≈ 3% of global GHG, in the EU ETS by 1st January 2024.

Regulations and Implications

  • The European Commission is expected to publish final legislation (agreed upon by EU Council) for shipping’s inclusion into the EU ETS. With implementations set for 1st January 2024.
  • The current proposal under consideration by the EU would hold the charterer responsible for their fleets’ emissions and require them to start trading freight derivatives and EUAs, the current proposal covers:
      • Ships over 5,000 gross tonnes (55% of all ships in the EEA).
      • They are responsible for 90% of Emissions in shipping.
      • No phase in period = 100% from 2024 for intra-EU trips, 50% for extra EU trips.
  • Whilst some operators may have experience in the derivative market, many do not. However, it is never too early to start educating themselves. We encourage them to turn to IncubEx and EEX, not only for their freight requirements but also to assist them to meet their emissions compliance targets.

By The Numbers

  • Globally: shipping emits around 940 million tonnes of CO2 annually and is responsible for just under 3% of global greenhouse gas (GHG).
  • European shipping: emits around 144 million tonnes of CO2 annually, (3.7% of total EU CO2 emissions).
  • The aim for shippings Inclusion into the EU ETS is to help the EU reach the fit for 55% package.

Key benefits of trading on EEX

  • 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 Colleterial (Margin Credit) – EUAs can be used to reduce the initial margin requirements for:
      • EUA Spot Market (unrestricted number of certificates used)
      • 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 vial the same-day transfer service, regular T+1 request for transfer can be pre-dated to current day
  • Most competitive fee structure

 

  • Strong customer focus and personal assistance through account managers in London, Leipzig, Paris, Milan, Madrid, Chicago, Oslo.

Key benefits of trading on EEX

  • 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 Colleterial (Margin Credit) – EUAs can be used to reduce the initial margin requirements for:
      • EUA Spot Market (unrestricted number of certificates used)
      • 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 vial the same-day transfer service, regular T+1 request for transfer can be pre-dated to current day
  • Most competitive fee structure

  • Strong customer focus and personal assistance through account managers in London, Leipzig, Paris, Milan, Madrid, Chicago, Oslo.

ADDITIONAL RESOURCES

PDF

Shipping &
the EU ETS

Webpage

Environmental Products
on EEX

WEBPAGE

EUA ETS
Market Background

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