EU ETS Added $90/mt to EU Bunker Costs in 2024

by Ship & Bunker News Team
Wednesday January 1, 2025

Shipping's inclusion in EU ETS from January 1, 2024 potentially added around $90/mt to intra-European bunker costs last year, according to analysis by Ship & Bunker.

Specifically, in USD, the cost added for VLSFO (or light fuel oil) was $90.69/mt, heavy fuel (in practice HSFO) was $89.64/mt, and MGO was $92.25/mt.

This is assuming EUAs to offset emissions were purchased at the time of the journey in 2024 and converted from EUR and USD at the prevailing day rate.

These prices also take into consideration that for 2024 only 40% of the total cost incurred needs to be paid.

Costs would be further halved for any voyages where only one port was inside the relevant EU region.

Under EU ETS, ship emissions are offset by purchasing and subsequently surrendering EUAs.

As EUAs do not have to be surrendered until September of the year after the bunkers were burned, the true cost of EU ETS compliance for individual companies in 2024 may not be known until the end of September 2025.

Looking ahead, EU ETS compliance costs for Shipping will almost certainly rise as for 2025, 70% of the total costs incurred need to be paid, rather than 40% in 2024.

From January 1, 2025 those operating in the EU market also have EU Maritime compliance costs to take into account.

Ship & Bunker News Team
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