Starting October 1, 2024, Ocean Network Express (ONE), a shipping company based in Singapore, will be implementing an Emissions Trading System (ETS) surcharge in response to the European Union’s decision to include the maritime industry in its emissions trading scheme. This surcharge has become mandatory in the maritime industry since January 2024 and aligns with the EU’s goal to reduce greenhouse gas emissions in the shipping sector. The shipping industry, responsible for transporting billions of tons of goods globally, has been a significant source of pollution, with emissions increasing by over 80% since 1990.
Recent data has shown a notable rise in international shipping emissions, reaching a record high of almost 710 MtCO₂ between 2012 and 2022. In an effort to address the environmental impact of these emissions, there have been substantial moves towards reducing greenhouse gas emissions in the maritime sector. The International Maritime Organization (IMO) adopted a decarbonization strategy last year, requiring shipping companies to decrease their CO2 emissions per transport work by at least 40% by 2030 compared to 2008 levels.
Furthermore, the EU has set ambitious goals to reduce GHG emissions by at least 55% by 2030 and achieve net-zero emissions by 2050. As part of its “Fit for 55” climate policy package, the EU extended its emissions trading scheme to the shipping industry. Under this scheme, companies must monitor, report, and verify their GHG emissions annually to determine the European Union Allowances (EUA) required for compliance. Ocean Network Express has announced that it will closely monitor developments related to EU ETS and update its surcharge quarterly based on EUA prices sourced from ICE.
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