FAQ: The EU ETS for shipping explained

The EU ETS will expand to shipping in 2024, applying the 'polluter pays principle' to cargo and passenger ships of 5,000 gross tonnage and above. The system covers 100% of emissions for voyages between EU ports and 50% for voyages between EU and non-EU ports. Costs will be phased in, starting with 40% of 2024 emissions paid in 2025, reaching 100% by 2027. While CO2 is covered from 2024, methane and nitrous oxide will be included from 2026. Revenue will support the Innovation Fund and member state climate projects, with specific exemptions for ice-traveling ships, certain outermost regions, and small island ferries until 2030.

• The EU ETS for shipping applies based on routes: 100% of emissions for voyages between EU member state ports, and 50% for voyages between an EU port and a non-EU port.
• Financial obligations for shipping companies will be phased in over four years: 40% of 2024 emissions paid in 2025, 70% of 2025 emissions paid in 2026, and 100% of emissions from 2027.
• The system currently applies to cargo and passenger ships of 5,000 gross tonnage (GT) and above, with a decision in 2027 on whether to include offshore ships of 5,000 GT+ and general cargo ships between 400 GT and 5,000 GT.
• The scope of covered gases expands over time, covering carbon dioxide (CO2) from 2024, and adding methane (CH4) and nitrous oxide (N2O) from 2026.
• Certain exemptions and reductions apply until 2030, including a 5% reduction for ships traveling on ice and full exemptions for voyages to/between outermost EU regions and specific small island ferry routes.

APA

Daniele (2023). FAQ: The EU ETS for shipping explained. Carbon Market Watch. https://carbonmarketwatch.org/2023/12/06/faq-the-eu-ets-for-shipping-explained/

Chicago

Daniele. FAQ: The EU ETS for shipping explained. Carbon Market Watch, 2023. https://carbonmarketwatch.org/2023/12/06/faq-the-eu-ets-for-shipping-explained/.

Wikipedia

{{cite report |last1=Daniele |title=FAQ: The EU ETS for shipping explained |publisher=Carbon Market Watch |date=6 December 2023 |url=https://carbonmarketwatch.org/2023/12/06/faq-the-eu-ets-for-shipping-explained/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{daniele2023faq, author = {Daniele}, title = {{FAQ: The EU ETS for shipping explained}}, institution = {Carbon Market Watch}, year = {2023}, month = dec, url = {https://carbonmarketwatch.org/2023/12/06/faq-the-eu-ets-for-shipping-explained/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }