Hello @Stela.Spiraj
Thank you for sharing this insightful case study conducted prior to the release of the final text of the EU ETS regulation in September 2022. The study was based on the two phase-in scenarios initially proposed.
The Directive (EU) 2023/959 of the European Parliament and of the Council, published on May 10, 2023, now includes the final text of the EU ETS regulation. It is important to note that the agreed phase-in period differs from the initially proposed scenarios. According to the final text of the regulation, shipping companies are required to adhere to the following schedule for surrendering allowances:
- 40% of verified emissions reported for 2024
- 70% of verified emissions reported for 2025
- 100% of verified emissions reported for 2026 and each year thereafter
Thus, we though it would be nice to update your case study as follows.
Considering that the EU MRV data are public we analyzed the reporting data for 2021 (exported on v-25_05/08/2022) in order to see what Companies will need to pay to transport goods. The current study considers the above-mentioned pattern of voyages. The study is based on raw data and ships are categorized based on the ship type.
Based on the verified emission reports of 2021, the average annual total CO₂ emissions per ship type for one vessel per ship type is summarized in Table 1.
Taking into account the pattern of voyages for the EU ETS, (i.e. 50% of the emissions from ships performing voyages departing from an EU port and arriving at a non-EU port, 50% of the emissions from ships performing voyages arriving at an EU port from a non-EU port, 100% emissions from ships performing voyages between EU ports, and 100% of emissions from ships at berth in an EU port) based on the verified emission reports of 2021, the average amount of CO₂ emissions to be encountered for the EU ETS for one vessel per ship type is summarized in Table 2.
For the phase-in period, the average CO2 allowances to surrender for one vessel per ship type and year are presented in the following table.
Assuming that the cost of EU carbon permits will be 87.1 €, following the latest EU carbon permit spot price as per August 7, 2023, the average allowances for one vessel per ship type and year are presented in Table 4.
Assuming that a company has a fleet of 5 vessels of the same ship type, the average cost of the allowances to be surrendered per company in € are presented in Table 5.
Download the full case study here:
QueSeas - EU ETS - What will be the cost of decarbonizing shipping - Ver.2 07082023.pdf (388.3 KB)
References
- MRV-THETIS
- Directive (EU) 2023/959 of the European Parliament and of the Council
- EU ETS - Case study based on 2021 MRV data - What will be the cost of decarbonizing shipping?
- Emissions Trading System for Shipping Update - EU ETS