Home Green Marine EU ETS will cost the shipping market billions, states ITIC
December 11, 2023, by Jasmina Ovcina Mandra
The expense of the European Union’s (EU) brand-new Emissions Trading Scheme (ETS) to the shipping market might be in the billions, according to the projections from International Transport Intermediaries Club (ITIC).
Illustration; Image credit: Offshore Energy
The prolonged EU ETS, which enters into force on 1 January 2024, will set a yearly outright limitation on emissions of greenhouse gases (GHG) for vessels of 5,000 gt and above calling at EU ports. Its application is developing stress in between shipowners and charterers, especially surrounding the language within charter arrangements to make sure a reasonable circulation of expenses and legal dangers.
Robert Hodge, General Manager at ITIC, thinks that it is essential that ship supervisors take required due diligence to make sure any of these dangers are alleviated.
“Ship supervisors will have a crucial function in handling the plan for their owners. It is, for that reason, important that ship management contracts set out the obligations and liabilities for doing so. The EU ETS is most likely to cost the market billions in additional charges so ship supervisors and charterers ought to examine every element of the expenses and legal dangers connected with the plan to guarantee they are not left in a monetary precarious position,” Hodge kept in mind.