Introduction
The European Union’s Emissions Trading System (EU ETS) is undergoing a significant transformation with the inclusion of maritime transport. Starting in January 2024, vessels over 5,000 gross tonnage (GT) that call at EU ports will be required to monitor, report, and pay for their CO₂ emissions. This regulatory change is already impacting freight rates, ferry fares, and shipping companies’ financial strategies.
Explore the effects of the EU Emissions Trading System (EU ETS) on the maritime industry.
What Is the EU ETS and Why It Matters to Shipping
The EU ETS is a cap-and-trade system that sets a limit on total greenhouse gas emissions and allows companies to buy or sell emission allowances (EUAs). Each EUA permits the emission of one tonne of CO₂.
Until recently, the system applied to land-based sectors like power and aviation. Now, maritime transport is included, making carbon a direct cost for shipowners.
How the EU ETS Works for Maritime Operators
- 2024: 40% of emissions priced
- 2025: 70% priced
- 2026 onward: 100% priced
Operators must:
- Track emissions per voyage
- Purchase EUAs based on verified CO₂ output
- Surrender allowances annually or face €100 per excess tonne in penalties
Impact on Shipping Companies
1. Rising Operational Costs
With EUA prices fluctuating between €70–130 per tonne, mid-size vessels face millions in extra costs annually. These costs are passed down through:
- Freight rate surcharges
- Charter party adjustments
- Passenger fare increases
2. Compliance Complexity
Shipping companies must maintain:
- Monitoring, Reporting, and Verification (MRV) systems
- Digital bunker delivery notes
- Emission logs and voyage data
Failure to comply results in fines and reputational damage.
3. Charterer Reimbursement
Under the BIMCO ETS Clause 2024, charterers are legally obligated to reimburse EUA costs. This clause is now standard in contracts.
RoRo Passenger Ferries: Fare Increases and ETS Surcharges
RoRo ferry operators like DFDS, P&O Ferries, and Blue Star Ferries have introduced ETS surcharges on ticket prices.
Examples of ETS Surcharges (September 2025):
- Dover–Calais: €0.29–€0.39 per lane metre
- Rosslare–Dunkirk: €7.47–€9.93 per lane metre
- Newhaven–Dieppe: €0.88–€1.17 per lane metre
These surcharges vary monthly based on EUA market prices and route emissions intensity.
Freight Rates: A New Carbon Cost Layer
Freight forwarders and cargo owners are seeing carbon surcharges embedded in ocean freight rates. Analysts estimate a 5–10% increase depending on:
- Vessel fuel efficiency
- Route length
- Port emissions
Digital tools like CleanMile and Cargofive are helping companies track emissions and optimize costs.
EUA Price Trend and Maritime ETS Inclusion
To understand the financial impact, here’s a graph showing the historical and projected EUA prices from 2005 to 2030, with key milestones in the EU ETS and maritime inclusion:
Key Milestones:
- 2005: EU ETS launched.
- 2008: Price crash during the financial crisis.
- 2018: Market Stability Reserve introduced.
- 2021: Phase IV begins.
- 2024–2026: Maritime ETS phased in—40%, 70%, and 100% pricing respectively.
- 2026–2030: Prices projected to rise gradually, reaching ~€90/tonne by 2030.
Strategies for Maritime Operators
1. Invest in Green Technologies
- Retrofit vessels with energy-efficient systems
- Adopt alternative fuels (e.g., biofuels, RFNBOs)
- Use emissions tracking platforms
2. Collaborate for Scale
- Pool resources with other SMEs
- Share access to carbon trading desks and legal consultants
3. Optimize Routes and Fuel Mix
- Avoid high-emission ports
- Choose low-carbon fuels to reduce EUA needs
Future Outlook: FuelEU Maritime and ETS Integration
Starting in 2025, the EU ETS will align with FuelEU Maritime, which rewards cleaner fuel blends. Operators must now track:
- Tank-to-wake emissions
- Well-to-tank emissions for biofuels and hydrogen
This dual system incentivizes both emission reduction and fuel quality improvement.
Conclusion
The inclusion of maritime transport in the EU ETS marks a paradigm shift. Shipping companies must now treat carbon as a core cost, not just a compliance issue. For RoRo passenger ferries, this means higher fares. For freight operators, it means strategic recalibration.
The winners will be those who adapt early, invest smartly, and navigate the carbon economy with precision.
Useful Resources
The Maritime-Hub Editorial Team
Disclaimer: The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the official policy or position of Maritime-Hub. Readers are advised to research this information before making decisions based on it.
