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Shipping will pay for CO2 emissions

Followers of the Fit for 55 discussions in the European Parliament already knew there was a big chance it would happen: shipping will pay for its emissions when they visit EU ports. This is now also agreed upon between the European Parliament and member state representatives.

Ships are responsible for 3% of the world's emissions and the emissions that are covered by these new regulations are 10% of worldwide emissions coming from shipping.

With the current EU price of around EUR 85 this means a cost of EUR 7 bln per year. This will increase shipping costs with around 10% to 20%, making imported goods more expensive which will either incentivize decarbonizing shipping and / or improves local EU production.

Ships of 5000 gross tonnage or more will be taxed under these regulations, voyages between EU ports 100% of emissions will be covered. And between EU and non-EU ports 50% will be taxed.

The regulations will have a 3 year phase in period, starting from 2024.

The EU-ETS system has been very successful in decreasing emissions from affected industries (40% from the start of the system), making it the EU's climate policy flagship.

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