The European Parliament has voted in favour of including shipping in its emissions trading system (ETS).

Pursuant to EU countries signing off the new regulations, shipowners will be required to pay for allowances covering 40% of emissions from next year, 70% in 2025, and 100% from 2026.

Under the new rules, the parliament agreed yesterday to allocate 20m ETS allowances, worth some $2bn as of today.

The parliament’s ETS rapporteur Peter Liese said: “It is an important achievement to include ships in the EU ETS because that will encourage shipowners and operators to use the best available technology and to innovate and this will not only help the climate but also improve air pollution in cities close to rivers and the coastline.”

Importantly, the parliament also voted to include methane and nitrous oxide in addition to carbon dioxide in to its emissions package, something which had not been included before.

As part of the ETS, all emissions emitted by vessels calling at an EU port for voyages within the EU, as well as 50% of emissions from voyages that start or end outside the EU, and all emissions at berth in EU ports, will be included.

Companies with ships within the scope of the EU ETS are recommended to make the necessary updates to contractual arrangements and to start considering how to acquire the necessary emission allowances.

Article source: splash247.com