EU ETS for shipping and FuelEU Maritime
Since 2024, ships of 5,000 GT and over must surrender CO2 allowances for their voyages in the EU; since 2025, FuelEU Maritime caps the GHG intensity of the energy used on board.
On January 1, 2024, shipping enters the European Union's emissions trading system. Companies operating ships of 5,000 gross tonnage and over must surrender allowances for CO2 emitted on voyages between EU ports, for half of the emissions of voyages that start or end in the EU from a third-country port, and for emissions at berth. Entry is phased: 40% of 2024 emissions are to be covered (surrender in 2025), 70% of 2025, then 100% from 2026, with methane and nitrous oxide added from 2026. The FuelEU Maritime regulation, applicable since January 1, 2025, completes the scheme by capping the greenhouse gas intensity of the energy used on board: a cut of 2% in 2025 compared with 2020, 6% in 2030, up to 80% in 2050, with an obligation to plug ships at berth into shore power from 2030. Penalties for non-compliance are heavy. For the insurer, these compliance costs are operating expenses and enter no cover. They change the value of ships, the allocation of carbon cost between owner and charterer through standard charter party clauses, and the arithmetic of fleet age. A credit or hull insurer finds a reason to look at a ship's energy efficiency.
Textbook case. 8,000 TEU container ship on the Asia-Europe line. After applying the half for voyages outside the Union, 20,000 tonnes of CO2 per voyage fall within the scheme. In 2024, at 40%, 8,000 tonnes are to be surrendered: EUR 560,000 at EUR 70 a tonne. In 2026, at 100%, 20,000 tonnes: EUR 1.4M. The time charterer bears the carbon cost under the charter clause; failing that, the owner absorbs it. No hull or P&I policy covers this cost.
EU ETS shipping, maritime ETS, FuelEU Maritime, shipping carbon allowances, GHG intensity of marine fuel, EU ETS maritime
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