Just released, the European Union’s Monitoring, Reporting, and Verification (EU MRV) dataset for the 2022 maritime industry throws light on notable fluctuations in annual CO2 emissions compared to the previous year. Notwithstanding these swings, the shipping industry as a whole has demonstrated minor cutbacks in harmful expulsions. The EU MRV regulation, which obliges all vessels over 5,000 gross tonnages to record and reveal CO2 discharge statistics involving EU and EEA ports, will form the backbone for the integration of shipping into the EU emissions trading system (ETS) come January 1, 2024.
Delving into the Figures
Total shipping emissions applicable to the ETS model tallied up to 83.4 million metric tonnes of CO2 equivalent in 2022, reflecting a slight dip of 0.22% compared with 2021 figures. Given the contemporary market value of €90 per emissions allowance, shipping emissions had a total nominal value of a staggering €7.5 billion for the last year.
Financial Impact on the Shipping Industry
A newly merged venture between Wilhelmsen Ship Management and Affinity Shipping predicts that the shipping trade could be accountable for a hefty €3.1 billion in 2024, another €5.7 billion in 2025, and finally €8.4 billion in 2026. The estimations take into account the ETS phase-in duration covering 40% of emissions in 2024, 70% in 2025, and 100% in 2026, and it also considers the forward curve in EUAs.
Highlights from the Data
The freshly released data showcases emission reductions across diverse shipping segments, including tankers, container ships, general cargo vessels, reefers, roros, and chemical tankers. The container industry most notably led the group in reductions, with a whopping 8.95% decline saving roughly 2.3 million metric tonnes of CO2 equivalent.
Nevertheless, passenger ships and LNG carriers recorded prominent increases. The former achieved the overall highest, with a 118% annual increase equating to 2.8 million tonnes while the latter observed a 63% escalation equating to 2.1 million tCO2e.
The Path Forward
Hugo Wilson, director of Hecla Emissions Management, underscores the urgency for ship companies to be primed for their entry into the ETS. “We’ve been actively preparing customers from various segments of the shipping industry to ensure readiness by the start of the next year. We encourage more shipping companies to follow suit,” he said. Hecla Emissions Management was established by WSM and Affinity last year to aid shipping clients to comply with the EU ETS’s participation requirements.
