Emission Trading System

On July 14, 2021, the European Commission published a proposal for a Directive amending Directive 2003/87/EC establishing a system for greenhouse gas (GHG) emission allowance trading within the Union, Decision (EU) 2015/1814 concerning the establishment and operation of a market stability reserve for the Union GHG emission trading scheme and Regulation (EU) 2015/757. Directive 2003/87/EC created the EU Emission Trading System (ETS). The proposed amendments include the addition of the marine sector to ETS. It means that shipping companies (ship owner, bareboat charterer – whoever assumes responsibility for the operation of the ship, choice of fuel, route, speed of the ship) will have to reduce GHG emissions on annual basis by a factor of 4.2% when the new law is enfo