In today’s newsletter we address an issue of growing importance for those who use shipping services: the Emission Trading System (ETS) and its implications.
What is the Emission Trading System (ETS)?
The Emission Trading System is a trade system of greenhouse gas emission allowances in the European Union. It aims to reduce emissions and promote the transition toward a low-carbon economy. From a shipping perspective, this system has direct consequences on costs and operational procedures.
Consequences for the shipments:
–Increased energy costs: the emission allowances can lead to increased energy costs, with a direct impact on fuel and electricity prices. This can affect the costs of transportation, warehousing and the overall management of the shipments.
Administrative complexity: the new regulations require more attention in managing the GHG emissions data. Shipping companies will be required to monitor and declare their emissions more accurately, increasing administrative complexity.
–Innovations in fleets: the ETS may act as an accelerator for the adoption of more sustainable technologies in transportation fleets. This could lead to investments in low-emission vehicles or in the improvement of energy efficiency, with possible impacts on the structure and delivery times.
This is why it is even more important to rely on a partner capable of guiding you in choosing the best option for every shipment: the Global Shipping team has just completed specific training on these legislative changes, introduced just in January 2024, and is ready to support you in all your shipments.
