EU now requires ships pay for their carbon emissions.
Recently, the European Union added shipping to its carbon market. What this means, is now shipping vessels will be required to pay for their emissions, putting a financial incentive on being more environmentally conscious and forcing the entire sector to begin reducing emissions.
This deal which was agreed to by lawmakers and negotiators from the 27-country block would all to the carbon market all carbon dioxide, methane and nitrogen emissions from maritime voyages within the EU.
This is a huge step for the EU since the shipping sector hasn’t previously been included in the EU carbon market, while factories, power plants, and other sectors have already had financial incentives to limit emissions.
The hope, as voices by Peter Liese, a lead EU lawmaker on the rules, is that
“This will not only help the climate but also improve air pollution in cities close to rivers and the coast”.
This new change is set to go intro effect in 2024. At that time, shipping companies will be required to purchase permits to cover 40% of their emissions. This will steadily rise each year, requiring 70% in 2025 and 100% by 2026.
It’s important to note, this new ruling also includes 50% of emissions that occur on international trips that start and end in the EU. To help fund these changes, negotiators on the deal agreed to dedicate revenue from the sales of these carbon permits to these emission reduction projects.
Sources:
https://www.reuters.com/business/cop/eu-strikes-deal-make-ships-pay-their-carbon-emissions-2022-11-30/
https://ground.news/article/eu-strikes-deal-to-make-ships-pay-for-their-carbon-emissions
https://www.theglobeandmail.com/business/industry-news/energy-and-resources/article-eu-strikes-deal-to-make-shipping-companies-pay-for-their-carbon/?utm_source=ground.news&utm_medium=referral
https://earth.org/eu-shipping-carbon-market/
