Subscribe to our Mailing Lists (It's free!)
Friday, July 11, 2025
SAFETY4SEA
  • Home
  • Safety
    • All
    • Accidents
    • Alerts
    • Loss Prevention
    • Maritime Health
    • Regulation
    • Safety
    • Seafarers
    • Security
    IMO piracy

    IMO Piracy Report: Twenty five incidents during May 2025

    Dryad Global

    Dryad Global: Geopolitical tensions continue to shape maritime landscape

    ireland drug seizure

    Ireland’s largest drug smuggling plot leads to eight men in jail

    limpet mines tankers

    Greek tanker fleet boosts security amid limpet mine fears

  • SEAFiT
    • All
    • Intellectual
    • Mental
    • Physical
    • Social
    • Spiritual
    friendship

    Exploring the human need for friendship: A lifeline at sea and on shore

    neck pain

    Neck pain: A growing health concern for maritime workers

    Book Review: Building leaders the MMMA way

    Book Review: Feel grounded and think positive in 10 simple steps

    time

    Stay SEAFiT: Time is non-renewable – invest it wisely

  • Green
    • All
    • Arctic
    • Ballast
    • Emissions
    • Fuels
    • Green Shipping
    • Pollution
    • Ship Recycling
    • Technology
    BIMCO FuelEU Maritime Regulation

    EU issues low-carbon hydrogen fuel standards

    clean air act

    California updates ballast rules for water from low salinity areas

    biofuels

    India’s DGS issues biofuel bunkering guidelines

    biofuel

    Companies sign deal to advance crude lignin oil biofuel

  • Smart
    • All
    • Connectivity
    • Cyber Security
    • E-navigation
    • Energy Efficiency
    • Maritime Software
    • Smart
    Trafigura, ZeroNorth join forces to advance decarbonization solutions

    Trafigura, ZeroNorth join forces to advance decarbonization solutions

    floating data centres

    New partnership to develop floating data center on retrofitted vessel

    connectivity

    Innovating ocean safety: Intellian’s unified vision for connectivity and GMDSS

    autonomous navigation

    New deal aims to advance autonomous navigation technology

  • Risk
    • All
    • CIC
    • Detentions
    • Fines
    • PSC Focus
    • Vetting
    AMSA fine

    NorthStandard: Tips to avoid pollution fines in Turkey

    OCIMF

    OCIMF Annual Report 2025: SIRE 2.0 a welcome change for the industry

    USCG

    ABS PSC Report Q1 2025: 526 total vessels detained

    paris mou lists

    Paris MoU 2024 Performance lists

  • Others
    • All
    • Diversity in shipping
    • Maritime Knowledge
    • Offshore
    • Ports
    • Shipping
    • Sustainability
    • Videos
    Panama Canal

    Panama Canal reports increase in transits despite dry season

    UNCTAD

    UNCTAD: Global trade endures policy changes and uncertainty

    Eternity C

    Watch: Eternity C sinks in the Red Sea following Houthi attack

    newbuildings xclusiv shipbrokers

    Xclusiv Shipbrokers: Newbuilding momentum slows sharply in 2025

  • Columns
    Career Paths: Syb ten Cate Hoedemaker, Maritime Battery Forum

    Career Paths: Syb ten Cate Hoedemaker, Maritime Battery Forum

    GSR Services: The Hong Kong Convention sets the rules for total ship lifecycle responsibility

    NorthStandard: Data sharing to drive technology and improve crew wellbeing

    GSR Services: The Hong Kong Convention sets the rules for total ship lifecycle responsibility

    GSR Services: The Hong Kong Convention sets the rules for total ship lifecycle responsibility

    Trending Tags

    • Anchor Your Health
    • Book Review
    • Career Paths
    • Human Performance
    • Industry Voices
    • Interviews
    • Maripedia
    • Maritime History
    • Regulatory Update
    • Resilience
    • Seafarers Stories
    • SeaSense
    • Training & Development
    • Wellness Corner
    • Wellness Tips
  • Events
  • Plus
No Result
View All Result
  • Home
  • Safety
    • All
    • Accidents
    • Alerts
    • Loss Prevention
    • Maritime Health
    • Regulation
    • Safety
    • Seafarers
    • Security
    IMO piracy

    IMO Piracy Report: Twenty five incidents during May 2025

    Dryad Global

    Dryad Global: Geopolitical tensions continue to shape maritime landscape

    ireland drug seizure

    Ireland’s largest drug smuggling plot leads to eight men in jail

    limpet mines tankers

    Greek tanker fleet boosts security amid limpet mine fears

  • SEAFiT
    • All
    • Intellectual
    • Mental
    • Physical
    • Social
    • Spiritual
    friendship

    Exploring the human need for friendship: A lifeline at sea and on shore

    neck pain

    Neck pain: A growing health concern for maritime workers

    Book Review: Building leaders the MMMA way

    Book Review: Feel grounded and think positive in 10 simple steps

    time

    Stay SEAFiT: Time is non-renewable – invest it wisely

  • Green
    • All
    • Arctic
    • Ballast
    • Emissions
    • Fuels
    • Green Shipping
    • Pollution
    • Ship Recycling
    • Technology
    BIMCO FuelEU Maritime Regulation

    EU issues low-carbon hydrogen fuel standards

    clean air act

    California updates ballast rules for water from low salinity areas

    biofuels

    India’s DGS issues biofuel bunkering guidelines

    biofuel

    Companies sign deal to advance crude lignin oil biofuel

  • Smart
    • All
    • Connectivity
    • Cyber Security
    • E-navigation
    • Energy Efficiency
    • Maritime Software
    • Smart
    Trafigura, ZeroNorth join forces to advance decarbonization solutions

    Trafigura, ZeroNorth join forces to advance decarbonization solutions

    floating data centres

    New partnership to develop floating data center on retrofitted vessel

    connectivity

    Innovating ocean safety: Intellian’s unified vision for connectivity and GMDSS

    autonomous navigation

    New deal aims to advance autonomous navigation technology

  • Risk
    • All
    • CIC
    • Detentions
    • Fines
    • PSC Focus
    • Vetting
    AMSA fine

    NorthStandard: Tips to avoid pollution fines in Turkey

    OCIMF

    OCIMF Annual Report 2025: SIRE 2.0 a welcome change for the industry

    USCG

    ABS PSC Report Q1 2025: 526 total vessels detained

    paris mou lists

    Paris MoU 2024 Performance lists

  • Others
    • All
    • Diversity in shipping
    • Maritime Knowledge
    • Offshore
    • Ports
    • Shipping
    • Sustainability
    • Videos
    Panama Canal

    Panama Canal reports increase in transits despite dry season

    UNCTAD

    UNCTAD: Global trade endures policy changes and uncertainty

    Eternity C

    Watch: Eternity C sinks in the Red Sea following Houthi attack

    newbuildings xclusiv shipbrokers

    Xclusiv Shipbrokers: Newbuilding momentum slows sharply in 2025

  • Columns
    Career Paths: Syb ten Cate Hoedemaker, Maritime Battery Forum

    Career Paths: Syb ten Cate Hoedemaker, Maritime Battery Forum

    GSR Services: The Hong Kong Convention sets the rules for total ship lifecycle responsibility

    NorthStandard: Data sharing to drive technology and improve crew wellbeing

    GSR Services: The Hong Kong Convention sets the rules for total ship lifecycle responsibility

    GSR Services: The Hong Kong Convention sets the rules for total ship lifecycle responsibility

    Trending Tags

    • Anchor Your Health
    • Book Review
    • Career Paths
    • Human Performance
    • Industry Voices
    • Interviews
    • Maripedia
    • Maritime History
    • Regulatory Update
    • Resilience
    • Seafarers Stories
    • SeaSense
    • Training & Development
    • Wellness Corner
    • Wellness Tips
  • Events
  • Plus
No Result
View All Result
SAFETY4SEA

3 FAQs on the EU Emissions Trading System answered

by The Editorial Team
July 15, 2021
in Emissions
sulphur emissions

Credit: Shutterstock

FacebookTwitterEmailLinkedin

On 14 July, the EU officially proposed the extension of EU Emissions Trading System to cover the shipping sector. Amid increased discussions on the ETS, which seeks to put a price on carbon to reduce emissions, the EU answered five questions surrounding the issue.

The EU Emissions Trading System (ETS) works on the principle of ‘cap-and-trade’. It sets an absolute limit or ‘cap’ on the total amount of certain greenhouse gases that can be emitted each year by the entities covered by the system. This cap is reduced over time so that total emissions fall. IEU.Monitoring is answering the following questions:

 

RelatedNews

EU issues low-carbon hydrogen fuel standards

California updates ballast rules for water from low salinity areas

-What reforms are you proposing to emissions trading? 

On Wednesday, the European Commission presented a legislative proposal to revise the EU ETS in line with the EU’s more ambitious target of achieving net emission reductions of at least 55% by 2030, compared to 1990 levels. The sectors currently covered by the EU ETS account for around 41% of the EU’s total emissions, so their contribution is crucial to achieving the overall target.

The Commission is proposing that emissions from the current EU ETS sectors be reduced by 61% by 2030, compared to 2005 levels. This represents an increase of 18% compared to the current -43% contribution from the system to the EU’s climate target. To reach this target, the Commission proposes a steeper annual emissions reduction of 4.2% (instead of 2.2% per year under the current system), following a one-off reduction of the overall emissions cap by 117 million allowances (‘re-basing’).

The Commission also proposes to gradually remove free emissions allowances for the aviation sector, which is already covered by the EU ETS, and to move to full auctioning of allowances by 2027 to create a stronger price signal to drive emissions reduction.

The Commission also reviewed the Market Stability Reserve and proposes to strengthen it, enabling it to absorb the historical surplus of allowances more quickly and to ensure market stability, notably by maintaining the currently increased annual intake rate of allowances.

The Commission is also proposing to apply emissions trading in new sectors where sharper reductions are needed to reach the 2030 target. Under the proposal, emissions from maritime transport will be included in the existing EU ETS, while emissions from fuels used in road transport and building will be covered by a new, separate emissions trading system.

[smlsubform prepend=”GET THE SAFETY4SEA IN YOUR INBOX!” showname=false emailtxt=”” emailholder=”Enter your email address” showsubmit=true submittxt=”Submit” jsthanks=false thankyou=”Thank you for subscribing to our mailing list”]

This new upstream system will regulate fuel suppliers rather than households and car drivers. It will become operational as of 2025, with a cap on emissions set from 2026, based on data collected under the Effort Sharing Regulation. During the first year, fuel suppliers will be required to hold a greenhouse gas emissions permit and to report their emissions for 2024 and 2025. The cap in the new ETS will be reduced annually to yield emissions reductions of 43% in 2030 compared to 2005. To address the social impacts arising from the fact that the fuel suppliers are likely to pass on some of their carbon costs to consumers buying road transport and heating fuels, the Commission has also presented a proposal for a Social Climate Fund.

 

-How will maritime transport be included in the revised EU ETS?

To ensure that the maritime transport sector contributes to the EU’s climate ambitions, the Commission is proposing to extend the scope of the EU’s Emissions Trading System to cover CO2 emissions from large ships (above 5000gt), regardless of the flag they fly. The extension will include all emissions from ships calling at an EU port for voyages within the EU (intra-EU) as well as 50% of the emissions from voyages starting or ending outside of the EU (extra-EU voyages), and emissions that occur when ships are at berth in EU ports.

Under the proposal, the EU ETS would cover around two-thirds of maritime transport emissions (90 million tonnes CO2) and result in a price signal that incentivizes improvements in energy efficiency and low-carbon solutions and reduces the price difference between alternative fuels and traditional maritime fuels. The proposal builds on the provisions in place for other EU ETS sectors as well as the existing EU Monitoring, Reporting and Verification System for shipping, which tracks CO2 emissions from ships calling at all EU ports. In the FuelEU Maritime proposal, also presented today, the Commission proposes to increase the uptake of alternative, low-carbon fuels in maritime to help drive down emissions faster.

In practice, shipping companies will have to purchase and surrender ETS emission allowances for each tonne of reported CO2 emissions. For the administration of the system, shipping companies will be attributed to an administering authority of a Member State that will ensure compliance using the same rules as for the other sectors. In addition to the EU ETS rules on penalties, ships can be denied entry to EU ports where the responsible shipping company has failed to surrender the necessary allowances for two or more consecutive years.

To ensure a smooth transition, shipping companies will only have to surrender allowances for a portion of their emissions during an initial phase-in period, reaching 100% after 3 years. A reporting and review clause is included to monitor the implementation of the rules applicable to the maritime sector and to take account of relevant developments at the level of the IMO.

See also: EU overreach threatens to sink shipping’s decarbonization efforts, warns ICS

 

-How will the revision ensure stability in the carbon market?

The EU ETS is a market-based mechanism, which means that the carbon price is determined by supply and demand of allowances. The cap on emissions ensures that the environmental objectives are reached, and tradability of allowances ensures that these reductions are achieved in a cost-efficient way.

In response to a considerable surplus of allowances on the EU’s carbon market, with corresponding effects on the price signal, the Market Stability Reserve started operating from 2019. As part of the first review of the Market Stability Reserve this year, the Commission is now proposing a small number of changes to the rules for the operation of the reserve. The Market Stability Reserve is a fully rules-based mechanism, and does not allow the Commission to intervene in the market at its discretion. Instead, it automatically places allowances in the reserve or releases them in case pre-defined thresholds are crossed. The legislative proposal contains an amendment enabling a smoother placing of allowances in the reserve the closer the surplus on the market is to the relevant threshold.

The Commission also proposes that the Market Stability Reserve operates in the new ETS for road transport and heating fuels, with specific rules. Additional measures are also proposed to mitigate a potential risk of excessive price increases in the new system through a release of allowances from the reserve under certain conditions.

3 FAQs on the EU Emissions Trading System answered3 FAQs on the EU Emissions Trading System answered
3 FAQs on the EU Emissions Trading System answered3 FAQs on the EU Emissions Trading System answered
Tags: Emissions Trading System (ETS)EUreducing shipping emissionsregulatory update cmsm
Previous Post

Watch: ‘There is no vaccine against poor mental health’

Next Post

European Commission proposed the addition of shipping to the Emissions Trading System

SUGGESTED FOR YOU

biofuels
Fuels

India’s DGS issues biofuel bunkering guidelines

July 10, 2025
biofuel
Fuels

Companies sign deal to advance crude lignin oil biofuel

July 10, 2025
biofouling
Pollution

SQE MARINE: Keep your Biofouling Management Plan up to date

July 8, 2025
Singapore completes blended methanol bunkering
Fuels

MPA Singapore: Preparing for a multi-fuel future

July 8, 2025
solar power
Green Shipping

World’s first hybrid solar-powered inland vessel hits water

July 8, 2025
IMO Sulphur Cap Recap: Where we stand and what’s next
Emissions

ICCT: Reduction in sulphur limit is imperative

July 8, 2025

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Explore more

No Result
View All Result
MARITIME EVENTS

Explore

  • Safety
  • SEAFiT
  • Green
  • Smart
  • Risk
  • Others
  • SAFETY4SEA Events
  • SAFETY4SEA Plus Subscription

Useful Links

  • About
  • Disclaimer
  • Editorial Policies
  • Advertising
  • Content Marketing
  • Contact

© 2025 SAFETY4SEA

No Result
View All Result
  • Safety
    • Accidents
    • Alerts
    • Loss Prevention
    • Maritime Health
    • Regulation
    • Safety
    • Seafarers
    • Security
  • SEAFiT
    • Intellectual
    • Mental
    • Physical
    • Social
    • Spiritual
  • Green
    • Arctic
    • Ballast
    • Emissions
    • Fuels
    • Green Shipping
    • Pollution
    • Ship Recycling
    • Technology
  • Smart
    • Connectivity
    • Cyber Security
    • E-navigation
    • Energy Efficiency
    • Maritime Software
    • Smart
  • Risk
    • CIC
    • Detentions
    • Fines
    • PSC Case Studies
    • PSC Focus
    • Vetting
  • Others
    • Diversity in shipping
    • Maritime Knowledge
    • Offshore
    • Ports
    • Shipping
    • Sustainability
    • Videos
  • Columns
    • Anchor Your Health
    • Book Review
    • Career Paths
    • Human Performance
    • Industry Voices
    • Interviews
    • Maripedia
    • Maritime History
    • Opinions
    • Regulatory Update
    • Resilience
    • Seafarers Stories
    • SeaSense
    • Tip of the day
    • Training & Development
    • Wellness Corner
    • Wellness Tips
  • SAFETY4SEA Events
  • SAFETY4SEA Plus Subscription

© 2025 SAFETY4SEA

Manage your privacy
We use technologies like cookies to store and/or access device information. We do this to improve browsing experience and to show (non-) personalized ads. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
Manage options
{title} {title} {title}
No Result
View All Result
  • Safety
    • Accidents
    • Alerts
    • Loss Prevention
    • Maritime Health
    • Regulation
    • Safety
    • Seafarers
    • Security
  • SEAFiT
    • Intellectual
    • Mental
    • Physical
    • Social
    • Spiritual
  • Green
    • Arctic
    • Ballast
    • Emissions
    • Fuels
    • Green Shipping
    • Pollution
    • Ship Recycling
    • Technology
  • Smart
    • Connectivity
    • Cyber Security
    • E-navigation
    • Energy Efficiency
    • Maritime Software
    • Smart
  • Risk
    • CIC
    • Detentions
    • Fines
    • PSC Case Studies
    • PSC Focus
    • Vetting
  • Others
    • Diversity in shipping
    • Maritime Knowledge
    • Offshore
    • Ports
    • Shipping
    • Sustainability
    • Videos
  • Columns
    • Anchor Your Health
    • Book Review
    • Career Paths
    • Human Performance
    • Industry Voices
    • Interviews
    • Maripedia
    • Maritime History
    • Opinions
    • Regulatory Update
    • Resilience
    • Seafarers Stories
    • SeaSense
    • Tip of the day
    • Training & Development
    • Wellness Corner
    • Wellness Tips
  • SAFETY4SEA Events
  • SAFETY4SEA Plus Subscription

© 2025 SAFETY4SEA