Implementation of EU Emissions Trading System (ETS)
Hamburg, 7 December 2023
Starting on 1 January of next year, the shipping sector in Europe will become part of the EU Emissions Trading System (EU ETS).
In light of climate change, the European Union wants to dramatically reduce CO2 emissions in the years ahead. To this end, for several years, various industrial sectors have been subject to emissions trading, which aims to advance this reduction by setting a price on CO2 emissions and thereby creating an incentive for companies to emit less pollutants.
Tailwind and its vessels will also be affected by the inclusion of shipping in the EU ETS. Under these circumstances, it is important for us to emphasise that we will be complying with all the resulting obligations – not only because they are legally mandatory, but also because protecting the environment is a matter of great concern to us.
As a result of the introduction of the EU Emissions Trading Scheme, we anticipate that meeting these requirements will lead to higher operating costs. We ask for your understanding that, like other shipping companies, we will be passing on these additional costs to our customers in the form of a surcharge.
Going forward, the ETS will be reviewed quarterly on the basis of a benchmark public index. Given the phased approach adopted by the EU (see below), we can expect the surcharges to increase in the near future.
Below, we provide an estimate based on a market value of carbon allowances of approximately EUR 85 per tonne of CO2 for our trade lanes to illustrate what can be expected starting on 1 January 2024:
Asia-Mediterranean: € 48 / TEU Dry - € 58 / TEU Reefer
Mediterranean-Asia: € 25 / TEU Dry - € 35 / TEU Reefer
Asia-North Europe: € 57 / TEU Dry - € 72 / TEU Reefer
North Europe-Asia: € 15 / TEU Dry - € 25 / TEU Reefer
Intra-Europe: € 43 / TEU Dry - € 53 / TEU Reefer
If you would like to learn more or have any questions, please feel free to contact us or our agents at any time.