Is The Shipping Industry Ready For Europe’s Cap And Trade Rule?
Following the formal approval of the EU’s emissions trading scheme (EU ETS) by the European Parliament, shipowners are now mandated to submit verified emissions data for all voyages that start or end at an EU port from 2024. But is the roll out of the carbon cap-and-trade scheme to the sector an important component in the fight to curtail carbon emissions or just another financial hit?
To ensure the accuracy and integrity of a ship’s emissions data, the EU ETS now requires shipowners to submit emissions data at least five days before the deadline for submitting CO2 permits/allowances, with the data verified by an accredited body, such as a Classification Society.
The five-day rule is likely to have a significant impact on shipowners’ operations, as it requires operators to gather and verify emissions data in a shorter timeframe than was previously required.