ETS - The New EU Carbon Tax for Ferry Tickets
At Motis, we are committed to keeping our customers informed about significant regulatory changes in the maritime industry. Starting from 1 January 2024, the European Union is introducing the Emissions Trading System (ETS) for shipping, a new 'carbon tax' that will affect many EU freight vessels.
What is the EU ETS for Maritime Transport?
The EU ETS for Shipping is a major part of the EU's initiative to reduce greenhouse gas emissions across industries. Under this new system, ferry operators will be required to reduce their CO2 emissions annually for vessels over 5000 gross tonnage.
Impact on Ferry Ticket Prices
As a result of the ETS, ferry ticket prices are expected to increase. The costs associated with reducing emissions will lead to higher rates for EU ferry tickets, reflecting the maritime industry's efforts to minimize its environmental impact. It's important to note that these changes will predominantly affect EU routes, with UK domestic routes remaining unaffected.
Gradual Increase Over Three Years
Additional costs for ferry companies will lead to a gradual increase in ferry ticket rates each year over the next three years. This means that starting in 2024, you can expect to see a rise in the cost of EU ferry tickets.
Shipping companies must start using allowances to cover a portion of their emissions, increasing annually:
- 40% for emissions reported in 2024.
- 70% for 2025.
- 100% for 2026 onwards.
The system is flag-neutral and covers 100% of emissions for intra-EU voyages and 50% for voyages to or from non-EU ports.
How Much Will it cost?
EXAMPLE ETS surcharges from 1st January 2024
| Dover - Calais | Mediterranean | North Sea Routes | Irish Sea Routes | |
|---|---|---|---|---|
| Artic | + £8 | + £20 | + £12 | + £20 |
| Trailer | + £6 | + £15 | + £9 | + £7.50 |
| Van | + £4 | + £11 | + £5 | + £4 |
Updated September 2023
Preparing for the Change
As a valued customer, we want to ensure you are prepared for these changes. It's crucial to be aware that ferry ticket costs will increase as the ETS comes into effect. We recommend planning your freight ferry needs accordingly to accommodate the expected price adjustments.
Staying Informed and Supported
For more detailed information about the EU ETS for Shipping and how it might impact your operations, please visit:
The European Commision website
FAQ – Maritime transport in EU Emissions Trading System (ETS) (europa.eu)
ETS Statement | P&O Freight (pofreight.com)
Irish Ferries Environmental Charge
If you have any questions or need assistance in understanding these changes, our team is here to help:
Email: booking@motis.com
Phone: +44 2830 252 500
At Motis, we are dedicated to providing industry-leading service and supporting our customers through these regulatory changes. Count on us to be your trusted partner in the freight industry.
