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EU ETS

Navigating the EU ETS: A New Horizon for Ship Owners/Operators

Charting a Course for Sustainable Shipping

In recent years, the maritime industry has undergone a transformative shift towards sustainable practices. Central to this movement is the inclusion of shipping within the European Union Emissions Trading System (EU ETS). This significant development marks a pivotal step in curbing greenhouse gas emissions from one of the most critical yet historically challenging sectors.

Setting Sail for a Greener Future

Established in 2005, the EU ETS has been instrumental in driving down emissions across various industries within the European Union. Originally designed to address emissions from stationary sources, its expansion to include maritime transport underscores the EU’s commitment to achieving a more sustainable, low-carbon future.

Embracing Accountability on the Open Seas

With this inclusion, ship owners and operators are now poised to take an active role in reducing their environmental impact. By participating in the EU ETS, they can secure emissions allowances, trade surplus allowances, and explore innovative pathways towards decarbonization.

Understanding Allowances

EU ETS allowances represent a quantifiable unit of emissions, tradable within the system. Each allowance allows the holder to emit one metric ton of CO2 equivalent. Owners/Operators must quantify their emissions annually before surrendering the relevant amount of EUAs before the deadline (30th September of each Calendar Year).

Securing Your Sustainability Strategy

EUA’s are a MIFID regulated Asset Class, not available for purchase directly in the market by Stakeholders, as such they must be acquired through an intermediary. Through a trading partnership with Exovo, you can acquire and hedge the necessary allowances using a number of buying strategies available to our clients. This tailored approach ensures conformity to the sustainability, budgeting and profitability goals of each entity.

HOW WILL EU ETS ALLOWANCES AFFECT YOUR FLEET:

Stay Ahead of the Curve: Compliance Starts in 2024

Starting January 1st, 2024, shipping companies are set to embark on a new era of sustainability through the EU ETS. This phased approach will require operators to secure allowances corresponding to their reported emissions. Let’s break it down:

HOW WILL EU ETS ALLOWANCES AFFECT YOUR FLEET:

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