EU ETS for Shipping
The EU Emissions Trading System (EU ETS) is the European Union's cap-and-trade carbon market, and from 2024 it was extended to maritime shipping. Ships calling at EU/EEA ports must now surrender emission allowances (EUAs) for their CO₂ emissions — putting a real, rising price on carbon and making emissions a direct operating cost.
The scheme phases in (40% of emissions in 2024, 70% in 2025, 100% from 2026) and covers 100% of emissions on intra-EU voyages and at berth, and 50% of emissions on voyages into or out of the EU. The shipping company (or ISM manager) is responsible for monitoring emissions (building on EU MRV data), buying allowances and surrendering them annually. EU ETS, alongside FuelEU Maritime and the IMO measures, turns decarbonisation into a hard financial incentive: cutting fuel and emissions now directly cuts allowance costs. It is a major new cost and compliance factor in trading to Europe.
EU ETS put a price tag on shipping's carbon — every tonne of CO₂ on EU trades now costs money in allowances, and that cost rises as the phase-in completes. It turns decarbonisation from aspiration into P&L, making fuel efficiency directly bankable. For anyone trading to Europe it is a significant, growing line of cost and compliance.
What does EU ETS require of ships?
To monitor their CO2 emissions and surrender emission allowances (EUAs) for emissions on EU-related voyages and at berth, phased in to 100% by 2026.
Which emissions are covered?
100% of intra-EU and at-berth emissions and 50% of emissions on voyages into or out of the EU.