Shipping & The EU ETS
EU Regulations and Implications
VOYAGES COVERED
Shipping companies* now have a compliance mandate to cover their fleets’ emissions which requires them to purchase EU Allowances (EUAs):
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- 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
- In 2021 European Shipping emitted around 124 million tonnes of CO2, 3% to 4% of total EU CO2 emissions Source: European Commission
- 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.
More Information:
For more information, resources, and FAQs on Maritime Sector, please visit our partners at EEX.
Key benefits of trading on EEX
For shipping participants, EUA contracts on EEX offer a number of advantages, including:
- Emissions Spot Market Margining
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- 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)
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- 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.
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
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