EU Emissions Trading System (ETS)   

The EU Emissions Trading System (ETS) was implemented starting in 2024. Shipping companies are required to purchase Emission Allowances (EUA) to offset their CO2 emissions. The phase-in schedule began in 2024 with 40% coverage and will increase to 70% coverage as of January 1, 2025, ultimately reaching 100% coverage by January 1, 2026.

To address the additional costs associated with purchasing the necessary EUA certificates, an ETS surcharge was introduced effective January 1, 2024. The surcharge parameters include the number of certificates needed to cover the relevant CO2 emissions and the applicable price of the EUA certificates. The average EUA price from the 26th of one month to the 25th of the following month serves as the basis for the surcharge applicable in the upcoming month. For example, the surcharge for January 2025 will be communicated on 27.12.2024.

The 70% increase in the ETS surcharge, despite the required EUA coverage rising by 75% (from 40% to 70%), is due to the partial use of biofuel to reduce energy intensity in accordance with maritime fuel legislation effective from January 2025. Thanks to the lower energy intensity, the 75% coverage is achieved with a slightly reduced number of certificates.

Upcoming Change in 2026
Starting January 1, 2026, the EU ETS will undergo another significant adjustment. From this point onward, the system will cover 100% of shipping emissions, marking the final phase of the implementation schedule. In addition, the calculation method will be expanded to include not only CO₂ but also methane (CH₄) and nitrous oxide (N₂O) emissions. This comprehensive approach reflects the EU’s commitment to reducing the overall climate impact of maritime transport. Consequently, ETS-related costs are expected to rise, as the surcharge will be adjusted to account for the additional greenhouse gases.

The current ETS surcharge per route can be found here.