With the EU’s inclusion of the maritime industry in its Emissions Trading System (EU ETS), Maersk published an article on its official website on July 12, with the latest interpretation of this, hoping to help its customers better understand the latest developments in EU-related legislation . #Paper cup fan raw material

European Parliament passes three key draft legislations including EU ETSOn June 22, 2022, the European Parliament plenary voted to adopt three key draft climate legislation (Fit for 55) proposed by the European Commission on July 14, 2021 The positions of the draft draft are: the revision of the EU Emissions Trading System (EU ETS), the regulations on the establishment of a carbon border adjustment mechanism (CBAM) and the regulations on the establishment of a social climate fund.

For the maritime industry, the main revisions are as follows: the maritime industry will be included in the EU ETS from January 1, 2024, with no transition period; it will be applicable to ships of 5000GT and above before the end of 2026, and will be included in ships of 400GT and above from January 1, 2027 ; Before December 31, 2024, the European Commission should assess the impact of greenhouse gases other than CO2, methane and nitrous oxide and particulate matter emitted by ships entering and leaving the ports of EU member states on the global climate, and make legislative proposals to address them as appropriate; Until December 31, 2026, the EU ETS covers only 50% of the emissions of the flights outside the EU. #paper cup fan design

From January 1, 2027, 100% of emissions from all flight sectors within and outside the EU will be included. Only non-EU countries can reduce to 50% under certain conditions, such as carbon pricing mechanisms equivalent to EU ETS, some least developed countries or small island countries; fully applicable to ships whose distance between EU ports and non-EU ports is less than The discharge in the 300-nautical-mile area, that is, the discharge of this part of the voyage, requires 100% of the quota; before December 31, 2029, for ice-class ships or ships sailing in ice conditions, or ships in both conditions, shipping companies may Reduce the number of quotas to be cleared. From 2030, 100% of the verified emissions will be paid off; the “Ocean Fund” will be established, and 75% of the auction revenue of the maritime industry’s quota will be transferred to the Ocean Fund, which will be used exclusively for the energy transformation of the maritime industry; if it is used by entities other than shipping companies The entity is ultimately responsible for the purchase of fuel or the operation of ships according to the contractual arrangement, and the entity shall be responsible for paying the costs of fulfilling the obligations of this Directive according to the contractual arrangement; if the IMO adopts the global market measure, the European Commission considers the possibility of coordination with it; Amend the MRV regulation to cover CO2 , methane and nitrous oxide emissions. #paper cup fan manufacturers

Specifically, the European Parliament made significant changes to the European Commission proposal. Most notably, emissions from routes in non-EU regions are included in 100% rather than 50%. In the original proposal, routes within the EU were 100% included, while routes from EU ports to ports outside the EU only included 50% of the emissions from the entire route. After this adjustment, this will still be the case until 2027, but starting January 1, 2027, routes involving external European ports will also be fully included in the EU ETS. This greatly increases the influence of the EU ETS outside Europe. The aim is to seek to reduce further greenhouse gas emissions, which will naturally have an impact on transport costs as compliance costs increase. In addition, the European Parliament version abolished the phasing period, and from 1 January 2023, a carbon border adjustment mechanism will be established to prevent omissions and incentivize non-EU countries to reduce carbon emissions. In fact, the EU ETS is applied to ports with a transshipment share of more than 60% within 300 nautical miles. This means that shipping costs at transit ports that meet these criteria may also increase. Positively, the carbon tax on shipping will not only apply to carbon dioxide emissions, but will also include methane and nitrous oxide emissions. While this may have little impact on costs at the moment, it sends an important signal to encourage the use of renewable fuels in the future.

On June 29, 2022, the Council of the European Union adopted its version of the EU ETS legislation. It should be noted that although the legal texts of the above three legislations have not yet been finalized, the passage of the European Parliament legislation this time means that the EU Parliament has formed the “first reading” text of the EU Emissions Trading System (EU ETS) after the revision. According to the normal legislative process, next, the European Commission, the European Parliament and the European Council will enter the “tripartite talks” to reach a consensus and make the legislation take effect.
Maersk expects the EU carbon tax (EUA) to cost around 90 euros. Considering that the European Parliament’s version of the EU ETS proposal abolished the phased use period, which required the payment of allowances at 100% of verified emissions and covered CO2, methane and nitrous oxide emissions, the liner companies saw the obligation to purchase allowances as One hundred percent commitment. #paper cup fan suppliers

Maersk said this meant to its customers that compliance with the EU ETS could be costly, so it would inevitably affect shipping costs. The volatility of EU EUAs traded in EU ETS is expected to increase as the revised legislation comes into effect. To ensure the required transparency, Maersk plans to treat these fees as separate earmarked surcharges from the first quarter of 2023.

Specifically, according to Maersk’s calculations, it is expected that a dedicated surcharge of 184 euros should be added per container on the route from northern Europe to the United States, and a surcharge of 276 euros per reefer container on the same route. The routes with the highest surcharges are from the West Coast of South America to Europe, with estimated surcharges of EUR 213 and EUR 319 per container and reefer, respectively. From the Far East to Europe, the surcharge is expected to be EUR 170 and EUR 255 per container and reefer, respectively. From the Nordic to the Far East, the surcharge is expected to be EUR 99 and EUR 149 per container and reefer, respectively. From the Middle East to Northern Europe, the surcharge is expected to be €106 and €159 per container and reefer, respectively. #paper cup fan price list

In addition, for the European Parliament to pass the EU ETS and other three key draft legislation, the World Shipping Council (WSC) said that after the European Parliament passed the EU ETS proposal, it means that the EU has formed the EU ETS “first reading” text. The WSC calls on the European Commission, the European Parliament and the European Council to work together in the ensuing “tripartite talks” to ensure that the EU ETS sends the right market signals for shipping decarbonisation. Specifically, the WSC expressed two important concerns. On the one hand, the WSC believes that there is a loophole in the EU Parliament’s position on the “subject of responsibility”, arguing that the shipowner should not be protected by mandating contracts to pass the cost on to the operator, but hopes that A cost sharing agreement is negotiated between the ship operator, the charterer and the owner on their own. On the other hand, the WSC called on the European Parliament to take an urgent position on FuelEU Maritime, stressing that FuelEU Maritime is essential for EU policymakers to achieve their climate goals and to decarbonize shipping. Paper Cup Fan, Paper Cup Raw, Pe Coated Paper Roll – Dihui (nndhpaper.com)