Maritime transport plays a major role in the EU’s economy and is one of the most energy-efficient forms of transport, but it is also a major source of greenhouse gas emissions. The EU Emissions Trading System (EU ETS) was introduced in 2005 as a tool to limit and reduce CO2 emissions. This will have a direct impact on sea freight and ferry traffic, as these operators will be required to invest in CO2 quotas that reflect their CO2 emissions. The aim is to push the industry towards more sustainable alternatives and achieve CO2 neutrality by 2050 and meet the target of a 50% reduction in greenhouse gases by 2030. The EU wants to promote investments in greener technologies.
Under the ETS, the companies that emit greenhouse gases must pay a tax in proportion to how much they emit in order to motivate them to reduce their emissions and costs.
The ETS will be integrated on sea freight/ferry routes in three phases, with the first phase being introduced on January 1, 2024, and including emission permits for 40% of emissions. In 2025, the ETS will cover 70% of emissions, and in 2026, 100% of emissions will be taxed.
We see that electric ferries are being deployed on short routes such as Helsingør-Helsingborg, but longer routes can currently be not be replaced by electrically powered vessels.
As SDK Logistics uses ferries on a number of destinations, the new tax will unfortunately lead to increased costs, which we cannot cover alone, but will be forced to pass on to our customers. The cost will be calculated in relation to the individual route and will follow the current costs relating to the route. It is to be expected that the costs for the ETS will fluctuate, as CO2 quotas are traded on the European Energy Exchange (EEX) and other similar commodity exchanges.
We hope for understanding that the EU’s CO2 taxation is important for the overall desire to reduce climate impacts.
Should there be any questions about this, you are welcome to contact your usual contact person at SDK Logistics.