New ETS Emission Surcharge Coming In From January

November 15, 2023

New ETS Emission Surcharge Coming In From January

Unique Forwarding have received notification from various carriers that a new surcharge will be introduced from January for ocean freight, which is understood to cover the escalating requirements of the EU’s Emissions Trading System (ETS).

The level of this surcharge varies from carrier to carrier and also by trade, with the below providing just an early indication.

Asia to North Europe: Between €22 and €35 per TEU
Asia to Mediterranean: Between €18 and €23 per TEU
Europe to North America: Between €31 and €41 per TEU

Ocean freight carriers will need to abide by new ETS regulations from January 1st, when they will also effectively pay a fee for every ton of CO2 that their vessels emit. This will be managed by the steamship line reporting their emissions and purchasing allowances.

After 2023, these targets become progressively more difficult.

  • in 2024, 40% of emissions to be converted into allowances.
  • in 2025, 70% of emissions to be converted into allowances.
  • from 2026, 100% of emissions to be converted into allowances.

The EU’s ETS system was set up in 2005 and the number of allowances available decreases every year, as part of the programme to reduce greenhouse gases emitted in line with the 2030 and 2050 targets.

 

 

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