European Union launches Emissions Trading Scheme

Chamber of Shipping > Blog > News > International > European Union launches Emissions Trading Scheme

The European Union’s emissions trading system (EU ETS) has introduced the largest regional green regulations in shipping history, mandating vessels visiting EU ports to offset their applicable CO2 voyage emissions by purchasing EU Allowances (EUAs). Data estimates by Clarksons Research, based on a $90-per-tonne CO2 average EUA price and 2022 trading patterns, reveal that for a Very Large Crude Carrier (VLCC) traveling from Ras Tanura to Rotterdam, EU ETS costs will amount to around $200,000 per voyage in 2023, equivalent to 4% of current freight costs. These costs are projected to increase to $0.5 million, or 10%, by 2026 when the regulation is fully phased in at 100%.

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