Enough is enough says ship managers, selfsourcing vaccines

The European Union’s Emissions Trading System (EU ETS) was extended to cover emissions from shipping as of 1^st January 2024.

The EU ETS is limited by a 'cap' on the number of emission allowances. Within the cap, companies receive or buy emission allowances, which they can trade as needed. The cap decreases every year, ensuring that total emissions fall.

Each allowance gives the holder the right to emit:

One tonne of carbon dioxide (CO2), or;
The equivalent amount of other powerful greenhouse gases, nitrous oxide (N2O) and perfluorocarbons (PFCs).
The price of one ton of CO2 allowance under the EU ETS has fluctuated between EUR 60 and almost EUR 100 in the past two years. The total cost of emissions will vary based on the cost of the allowance at the time of purchase, the vessel’s emissions profile and the total volume of voyages performed within the EU ETS area. The below is for illustration purposes:
~A 30.000 GT passenger ship has total emissions of 20.000 tonnes in a reporting year, of which 9.000 are within the EU, 7.000 at berth within the EU and 4.000 are between the EU and an outside port. The average price of the allowance is EUR 75 per tonne. The total cost would be as follows:
~~9.000 * EUR 75 = EUR 675.000
~~7.000 * EUR 75 = EUR 525.000
~~4.000 * EUR 75 * 50% = EUR 150.000
~~Total = EUR 1.350.000 (of which 40% is payable in 2024)
For 2024, a 60% rebate is admitted to the vessels involved. However, this is reduced to 30% in 2025, before payment is due for 100% with effect from 2026.
Emissions reporting is done for each individual ship, where the ship submits their data to a verifier (such as a class society) which in turns allows the shipowner to issue a verified company emissions report. This report is then submitted to the administering authority, and it is this data that informs what emission allowances need to be surrendered to the authority.
The sanctions for non- compliance are severe, and in the case of a ship that has failed to comply with the monitoring and reporting obligations for two or more consecutive reporting periods, and where other enforcement measures have failed to ensure compliance, the competent authority of an EEA port of entry may issue an expulsion order. Where such a ship flies the flag of an EEA country and enters or is found in one of its ports, the country concerned will, after giving the opportunity to the company concerned to submit its observations, detain the ship until the company fulfils its monitoring and reporting obligations.
Per the EU’s Implementing Regulation, it is the Shipowner who remains ultimately responsible for complying with the EU ETS system.

There are a number of great resources on the regulatory and practical aspects of the system – none better than the EU’s own:

‍https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02003L0087-20230605

‍https://climate.ec.europa.eu/eu-action/transport/reducing-emissions-shipping-sector_en

‍https://climate.ec.europa.eu/eu-action/eu-emissions-trading-system-eu-ets/what-eu-ets_en‍

Ship management trade association InterManager has said that it would be working separately to obtain Covid-19 vaccines in order to protect seafarers and to keep open international trade routes.

InterManager President Mark O’Neil was clearly frustrated by the lack of progress and slow pace of international efforts to help seafarers. “Global organizations have talked their way round in circles and still we are no further forward in providing a vaccination program for seafarers who are vital in ensuring that world trade and aid continues to be delivered,” he said, adding that “‘enough is enough”.

InterManager’s membership includes most of the world’s leading ship managers. O’Neil said that it would be sourcing vaccinations through legitimate channels to enable its members to vaccinate their seafarers as soon as possible, and to support others within the maritime industry to do the same.

Although the UN has designated seafarers as key workers, the message does not seem to have got through to member states. Only 58 countries have followed this directive and begun to prioritize seafarers to enable them to travel to and from vessels.

InterManager also observed that a large proportion of international seafarers originated from developing countries, where in many cases the official rollout of vaccinations had been slowed by a lack of availability of vaccines.

O’Neil said that InterManager would continue to collaborate and would give full support to the IMO and fellow shipping industry NGOs in sourcing vaccinations for seafarers.

“The IMO is hampered by having to negotiate through the UN, WHO and others. Sitting back and waiting for these bureaucratic institutions is only part of the solution”, said O’Neil, concluding that “the world’s seafarers need our help and as ship and crew managers we must work together to do all we can to ensure that their lives and livelihoods are protected”.

SOURCE INSURANCEMARINENEWS

Enough is enough says ship managers, selfsourcing vaccines

The European Union’s Emissions Trading System (EU ETS) was extended to cover emissions from shipping as of 1st January 2024.

The European Union’s Emissions Trading System (EU ETS) was extended to cover emissions from shipping as of 1^st January 2024.