Emissions Trading System

What is EU ETS (Emissions Trading System)?

The EU ETS is a cornerstone of the EU’s policy to combat climate change and is a key tool for reducing greenhouse gas emissions. As part of the European Commission’s ‘Fit for 55’ package, the shipping industry will be included in EU Emission Trading System (EU ETS) as from 2024.

How are sailings between EU and non-EU countries treated?

Sailings between EU and non-EU countries will be liable for the purchase of emission rights for 50% of the distance between the two ports. Hence, on Seatruck’s UK-IE routes, ETS will initially only apply on 50% of the voyage. However, the UK is developing its own version of the ETS which will likely be implemented in the coming years.

What about sailings between Great Britain and Northern Ireland?

There will be no charge on UK domestic services initially, such as our Warrenpoint service, as the UK is yet to introduce a ETS scheme.

Will the ETS be fully implemented from the beginning of 2024?

No. The EU Commission agreed on a three-year phase-in period of the EU ETS for shipping. The agreed three-year phase in period is as follows:

• 40% as from 1 January 2024
• 70% as from 1 January 2025
• 100% as from 1 January 2026

How will ETS charges appear on my invoice?

A new separate line underneath the LSS surcharge will be added to all invoice formats from 1 January 2024.

What is the price of carbon and emission rights?

Currently the price of the European Union Allowance (EUA) is around EUR 90 and each allowance counts for one tonne of CO2. Follow the EU ETS price here: Carbon price tracker

Shadow ETS Table

The following table demonstrates what the ETS charge would be if the scheme had started (showing October 23).

*No UK ETS scheme as yet.

ETS is adjusted monthly, based on the average index price co2 and the £/$ exchange rate (Bank of England)