EMEA News
UK Shipping to Face Similar Rules to EU-ETS After New Deal
International shipping on voyages touching the UK is set to face rules similar to the EU emissions trading system under a new deal between the UK and EU.
On Monday a set of deals was announced between the UK and EU on a wide range of issues, including plans for the 'dynamic alignment' of the UK's emissions trading system with the EU's version once a full agreement on this can be arranged.
While the EU-ETS has included all ships over 5,000 GT in size since the start of last year, the UK-ETS previously planned only to include emissions from domestic shipping - not international - from the start of next year.
That plan will now be changed, a UK government spokesperson told Ship & Bunker on Monday.
"Under the agreement linking the UK ETS and EU ETS, both domestic and international maritime emissions will be included in the scope of the UK ETS," the spokesperson said.
"We are working closely with the EU to agree a timetable for negotiations to try and deliver a successful agreement."
Under the EU-ETS, ships on intra-EU voyages buy EU allowances (EUAs) for every tonne of carbon dioxide equivalent emissions they produce.
These allowances currently cost around EUR 69/mtCO2e. UK allowances were previously below the EUA price, but their prices have risen significantly on Monday in response to the alignment plans.
Ships on voyages between the EU and elsewhere have their EUA requirements halved.
The system is being phased in over a three-year period, with companies only facing 40% of the EUA requirement in 2024, 70% this year and 100% from 2026 onwards.
The system is also under review, and may be amended or removed altogether for shipping as a result of last month's IMO policy framework for shipping at a global level, if this deal is adopted in October.
