Greek Shipowners Face Rising Costs Under EU Emissions Trading Scheme

OceanScore has revealed that Greek shipowners could face significant costs under the EU emissions trading scheme, with an estimated $360 million in 2022 and potentially exceeding $1 billion as compliance costs increase. The scheme will require Greek-owned or -operated ships to purchase and surrender EU allowances based on their carbon emissions within European jurisdiction. As the percentage of liability rises to 100% by 2026, costs are projected to reach $910 million.

With the expected rise in EUA prices, compliance costs for Greek shipowners could soar even higher, potentially exceeding $20 million annually for a typical owner with 50 ships. Many Greek shipping companies are currently adopting a “wait-and-see” approach to observe how the regulation impacts compliance requirements and relationships with charterers. However, OceanScore’s co-Managing Director Ralf Garrn emphasizes the importance of incorporating EU ETS clauses in charter parties to allocate accountability for voyage EUA costs and minimize financial risk.

Garrn also highlights the necessity of accurate emission data to reduce financial liabilities and determine the charterer’s fair share of costs. Failure to properly manage and organize this information could leave shipowners bearing the burden of EUA liabilities and potentially resorting to litigation against charterers for owed emissions costs. It is crucial for Greek shipowners to take proactive measures now to mitigate their financial risk and navigate the complexities of the EU ETS.

Source .