As Hecla Emissions Management estimates in regard to EU ETS, the shipping industry could be liable for €3.1 billion in 2024, €5.7 billion in 2025 and €8.4 billion in 2026.
The European Union’s Monitoring, Reporting and Verification (EU MRV) dataset for shipping’s European CO2 emissions for the year 2022 data highlight some significant year-on-year changes from 2021 despite the shipping industry as a whole showing a modest reduction in emissions, Hecla claims.
According to Hecla, a company founded by Wilhelmsen Ship Management (WSM) and Affinity Shipping, total ETS-applicable emissions for the maritime industry amounted to 83.4 million metric tonnes of CO2 equivalent (tCO2e) in 2022, a modest decrease of 0.22% from 2021. At the current market value of €90 per emissions allowance (EUA), shipping emissions carried a total worth of €7.5 billion for the year.
So, using the forward curve in EUAs and the ETS phase-in period of 40% of emissions in 2024, 70% in 2025, and 100% in 2026, Hecla’s estimations show that the shipping industry might be liable for €3.1 billion in 2024, €5.7 billion in 2025, and €8.4 billion in 2026.
In addition, the data shows emissions decreases across multiple shipping segments, including tankers, container ships, general cargo ships, reefers, Ro-Ros and chemical tankers. The container sector showed the largest reduction, falling by 8.95% equating to 2.3 million metric tonnes of CO2 equivalent (tCO2e) saved.
However, passenger ships and LNG carriers logged substantial increases. The former scored highest, with a staggering 118% year-on-year rise equating to 2.8 million (tCO2e), the latter recording a 63% increase equating to 2.1 million tCO2e.
The projected liabilities emphasize the importance of shipping companies preparing for their entry into the ETS. We have been onboarding customers from across shipping’s value chain in order to have them fully prepared by the start of next year. We encourage more shipping companies to do the same
… said Hugo Wilson, Director of Hecla Emissions Management
