Two leading shipping companies have detailed the expected surcharges shippers will face next year as the shipping industry adjusts to the US emissions trading system. European Union (EU ETS). Maersk warns that these costs will be huge.

Starting from 1 January 2024, ship operators will be authorized to monitor and report their emissions during voyages within the European Economic Area and 50% of voyages that begin or end Termination at European ports.
In a  recent client advisory report, Maersk said that compliance costs are expected to be significant and will continue to increase with phased implementation. This cost will be passed on to customers as a separate surcharge called the ‘Emissions Surcharge’, and will apply to all trains within the EU-ETS scope.
Hapag-Lloyd also informed its customers that the additional cost of ETS will be applied as a separate surcharge and customers should be prepared for the cost in the coming year.
To offset these costs, Maersk estimates that on the Asia-North Europe route it will need to impose a fee of $73/FEU, while Hapag-Lloyd estimates a fee of $12/TEU.
The surcharge will be applied quarterly to shippers starting from the first quarter of next year. Transport companies must cover the cost of issuing emission permits, for 40% of greenhouse gas (GHG) emissions by 2024, increasing to 70% by 2025 and reaching the full level (100%) from 2020. 2024. 2026.
By 2024, transport companies must “buy” one EU Emissions Credit (European Union Allowance (EUA) for each ton of CO2 emissions reported and submitted to the EU annually.
EUA can be purchased through exchanges such as the Intercontinental Exchange, European Energy Exchange, Nasdaq and over-the-counter markets involving carriers and customers.
EU-ETS is designed according to the “cap and trade” model with total emissions limited in each period, with the participation of all member countries, and will gradually decrease each year. This will allow businesses to adjust operations to achieve their goals. The EU has also established annual Monitoring, Reporting and Verification (MRV) and other related processes known as the ETS Compliance Cycle to ensure the effective functioning of the market.

Market-covered emitters must have an approved emissions monitoring plan, in accordance with the Monitoring and Reporting Regulations (MRR) and the Accreditation and Verification Regulations (AVR). . Specifically, emitting entities will have to submit a report to the competent authority, the European Commission, and the report must be assessed by an appraiser before submission. Each country’s government, based on those reports, allocates a certain amount of free emission credits to businesses (the ratio of free emission credits to the total emissions of an enterprise is determined by the Government depending on each country). period), the remainder will become credits that are traded on the market. After each year, businesses will have to pay the full number of credits corresponding to the amount of emissions. If a business does a good job of reducing emissions and does not use up all the credits, it can retain them to meet future needs, or sell them to other businesses. Meanwhile, businesses that emit more than the free allocation will have to buy back emission credits on the market or through an auction organized by the Government.

Nguồn: logistics.gov.vn

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