EU Emissions Trading Scheme (“EU ETS”): Regulatory and contractual perspective
On 18 April 2023, the European Parliament decided that from 2024, the EU ETS would also apply to emissions from shipping. According to the EU regulations, the ‘shipping company’ concerned is responsible for compliance with the EU ETS vis- à-vis the authority. First, emissions from a ship in a calendar year are measured and verified. Then, the shipping company must submit the allowances to the authority in September of the following year. The first time allowances are to be submitted in September 2025 for emissions in the calendar year 2024.