In general, shipowners, brokers and charterers are currently in a phase of uncertainty. It is difficult to predict in detail how the extension of ETS will affect the shipping industry. But one thing for sure is that decarbonisation is unavoidable in the long run. Sustainability is here to stay, says Jakob Hjortlund, Head of Research at Maersk Broker.
How will the ETS affect shipping?
Despite the pending decisions, the EU ETS will undoubtedly affect the financial metrics and liability of operating in EU waters. Besides, the EU ETS will bring about an added administrative burden. To comply with future EU ETS regulations, shipowners must:
- Calculate emissions
- Have calculations verified
- Buy needed allowances
- Submit allowances
- Negotiate with charterers during the year on how to cover the cost.
Due to the costs for allowances and the added administrative burden, the cost of compliance with the EU ETS will likely be significant for owners.