Legal and technical implication of EU ETS

Background

• Drewry was appointed to propose an action plan for mitigating the challenges related to the legal and technical issues related to the implementation of the EU ETS.

Client Objectives

The study included:

• An overview of EU ETS and FuelEU Maritime;

• An evaluation of the legal and administrative issues that may arise due to the implementation of the EU ETS;

• An analysis of the possible revenue leakages and carbon leakages for the container, dry bulk and liquid bulk sectors as stakeholders could take evasive actions in order to reduce EU ETS costs;

• An analysis of the potential impact of EU ETS and FuelEU Maritime on the trade of dry bulk and liquid bulk sectors;

• A list of recommendations was prepared and shared with the client for addressing the potential legal, administrative, and technical issues, as well as possible revenue leakages and carbon leakages related to the implementation of EU ETS and FuelEU Maritime;

• An evaluation of the technical challenges and opportunities for capacity building to decarbonise the maritime sector;

• A roadmap and action plan for mitigating the impact were recommended.

   

Drewry Approach

• Drewry conducted a primary survey related to the project. A detailed analysis of the feedback provided was instrumental in gaining insights into the issues and remedial measures.

Results Achieved

• Drewry recommended a roadmap and action plans to address the challenges of implementing EU ETS. The study covered the following areas:

  • Legal

  • Administrative

  • Technical

  • Revenue leakage

  • Carbon leakage

  • Other areas such as capacity building for decarbonisation of the maritime industry