From Jan 1 2024, ferry tickets will potentially become more expensive as the EU Emissions Trading System (ETS) is introduced.
While the EU ETS has been around for almost 20 years, the ferry industry has not been subject to its laws until now.
From Jan 1 2024, freight ferries weighing more than 5000 GT (gross tonnage) will be subject to the EU ETS. This will also apply to passenger ferries.
Here’s what you need to know about the EU ETS:
Ferry operators who are subject to the new ‘carbon tax’ will receive enough EU emission allowances (EUAs) to cover their total yearly emissions.
Each year, the cap on emissions will decrease. Any additional emissions produced over this limit will cost operators money. Track the current cost of additional CO2 emissions per tonne here.
EUAs will be reduced over this period by the following:
For many reasons, some operators will be able to reduce their emissions to meet the standards set by the EU more easily than others.
Because of this, EUAs can be sold, bought, or carried over.
Shipowners can buy additional (unused) allowances from other companies, sell their own unused allowances, and may also carry over any unused allowances from one year to the next.
This still enables the total number of emissions to decrease, and also means that companies only cut unnecessary emissions.
The EU is introducing the ETS for shipping in order to encourage shipowners to reduce their overall emissions. Those who fail to do so may receive large penalties or fines, and could in some cases face the potential detainment of their ship/s.
The EU ETS will mean higher ferry ticket prices.
As the EU ETS comes into effect for the shipping industry, we will keep you updated of any additional changes. Meanwhile, our sales team will continue to find you the best rates for your sailings.
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