EU ETS: shipping's big bill
The International Transport Intermediaries Club (Itic) has raised concerns about the financial impact of the European Union's Emissions Trading Scheme (ETS) on the shipping industry, predicting that costs could reach billions.
The ETS, effective from 1 January 2024, will limit greenhouse gas emissions for vessels above 5,000 gross tonnage (gt) visiting EU ports. The scheme has led to tension between shipowners and charterers regarding cost distribution and legal risks in charter agreements.
In a recent press release, Robert Hodge, general manager at Itic, stressed the importance of ship managers in administering the scheme and advises thorough risk assessment to prevent financial vulnerability. Bimco, with Ititc as a member, has adopted new ETS clauses for ship management agreements and voyage charter parties, designed to ease compliance with evolving regulations.
Itic is hosting a webinar entitled ‘EU ETS – Ship Managers, are you ready?’ to guide ship managers on the scheme's risks and protective measures. The ETS initiative aligns with global efforts by the IMO and the EU to reduce maritime greenhouse gas emissions. (pb)