Maritime emissions set to be included in EU ETS: implications for Norwegian shipping sector - Lexology

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January 18 2023

Wikborg Rein | Shipping & Transport - Norway

Introduction
How is the EU ETS applicable to the Norwegian shipping sector?
What bash Norwegian shipping companies request to beryllium alert of?


Introduction

As portion of its "Fit for 55" regulatory package, connected 14 July 2021 the European Commission presented a connection to see maritime emissions successful the EU emissions trading strategy (EU ETS) (for further details, spot "Maritime emissions acceptable to beryllium included successful EU ETS"). After extended negotiations with the European Parliament and the European Council, an statement was yet reached connected 18 December 2022. Although the directive is yet to beryllium formally approved and the property releases outlining the statement are brief, the information that emissions from shipping volition beryllium included successful the EU ETS from 1 January 2024 has yet been confirmed. This nonfiction outlines the accusation of this improvement for the Norwegian shipping sector.

How is the EU ETS applicable to the Norwegian shipping sector?

The EU ETS is the archetypal regularisation that volition enforce a terms connected Norwegian shipping companies' emissions connected voyages to oregon from an EU oregon European Economic Area port. The directive is emblem neutral, meaning that it applies to each applicable ships, careless of emblem oregon wherever the shipping institution is incorporated. For instance, if a Marshall Islands-flagged vas owned by a Norwegian institution trades betwixt Rotterdam and Shanghai, the shipping institution is required to taxable allowances for 50% of its c dioxide emissions for that voyage. As the costs associated with the strategy volition apt beryllium passed down the proviso concatenation and yet to the extremity consumer, the authorities will, to a definite extent, interaction the full Norwegian worth chain.

What bash Norwegian shipping companies request to beryllium alert of?

Norwegian vessel owners, charterers and vessel managers should see cautiously whether and however the caller directive whitethorn interaction them. Further, it is advised that these parties look cautiously astatine however to execute compliance and reappraisal commercialized relationships to adequately relationship for immoderate accrued outgo oregon risk. Norwegian vessel owners oregon vessel managers that privation to clasp different entities liable for penalties and different losses that whitethorn hap successful transportation with the EU ETS volition truthful request to guarantee that this is intelligibly specified successful their contracts. In this regard, the Baltic and International Maritime Council's (BIMCO's) recently published Emission Trading Scheme Allowances Clause for Time Charter Parties 2022 volition supply a bully starting point. BIMCO is besides presently revising its Shipman form, which volition see a dedicated ETS allowance clause.

For further accusation connected this taxable delight interaction Fredrik Roald Brun astatine Wikborg Rein by telephone (+47 22 82 75 00), fax (+47 22 82 75 01) oregon email ([email protected]).The Wikborg Rein website tin beryllium accessed astatine www.wr.no.

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