We have received communications from major shipping companies alerting us to the possibility of an imminent increase in freight-related costs. Similarly, terminals are required to renew their fleets in the next two years to achieve their decarbonization goal.
By way of illustration, at the bottom of this message, you will find an example that clarifies the potential impact on costs.
“Starting January 1, 2024, all maritime activity within the European Economic Area will enter the European Union Emissions Trading System (EU ETS).
This reform represents a significant change and a step forward in the fight against climate change.
The EU ETS is a carbon pricing mechanism established by the European Union in 2005 to combat climate change.
Its goal is to reduce greenhouse gas emissions by requiring all companies to acquire emission rights, also known as ’emission permits,’ for each ton of carbon dioxide (CO2) they produce.
The objective is to promote emission reduction by encouraging energy efficiency and investment in cleaner technologies.
The maritime sector will be integrated into the EU ETS starting January 1, 2024, meaning that all ships calling at European ports will be subject to the scheme.
Shipping companies will have to declare their CO2 emissions and purchase the equivalent in emission rights on the EU ETS market.
These rights will be progressively reduced over the years, compelling the shipping industry to reduce its carbon emissions: 40% of CO2 emissions must be converted into rights in 2024, then 70% in 2025, and finally, 100% of emissions in 2026.
As a shipping company, we will be obligated to purchase emission rights, generating additional costs related to the carbon price.
The costs associated with the purchase of these rights, as well as the necessary investments to reduce our emissions, will increase our operating costs.
Consequently, the implementation of the EU ETS will impact our prices, with the application of an EU ETS surcharge on January 1, 2024, the amount of which will be communicated in early December.”