Identification of non-EU ports impacted by EU 'ETS' charges

Background

• The enforcement of European Union market-based measures or Emission Trading Scheme (ETS) charges on the emission of CO2 by ships, to be implemented in 2024, may result in shipping lines changing their ship routes or cargo transhipment ports to minimise ETS charges. The European Commission stated that EU ETS charges will also apply to voyages to/from major non-EU transhipment ports located near the EU. Still, the EC did not list the ports concerned early on.

• To anticipate potential changes and their impact on its shipping line customers, the client contacted Drewry for an early analysis of the ports that may be affected by the new scheme.

Client Objectives

• Identify major container transhipment ports that meet the European Commission’s criteria on volume (% transhipped) and distance from the EU.

• Report on the ports that fulfil the above criteria and provide guidance on the ports with immediate concerns and those that are likely to be of concern in the medium term.

Results and conclusions

• Only 4 non-EU ports are expected to be of concern under the ETS regulatory regime.
• Another 2 ports are also likely to be of concern in the medium term.
• The client was reassured that the impact of including these transhipment ports would be limited in container shipping when calculating the charges.