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Inclusion of Shipping in the EU Emissions Trading System


The European Parliament has approved draft legislation to include emissions from ships in the EU Emissions Trading System (ETS) from 1 January 2022. Simultaneously, the EU Commission has launched an initiative to renew the ETS and extend its scope to the shipping industry. The initiative is currently in the public consultation phase, which closes on 5 February 2021.

The proposed legislation (which includes amendments to the EU Monitoring, Reporting and Verification (MRV) Regulation1 and the ETS Directive2 ) is now awaiting approval from the EU Council, and absent further proposals or amendments, could be adopted in early 2021.

Whilst the proposed legal framework remains unclear, it is expected that the ETS will have implications for all the key stakeholders in the physical transport chain – in particular, shipowners, charterers, operators and shippers. Requirements will be imposed on stakeholders to take steps to reduce greenhouse gas (GHG) emissions from ships. [...]


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