the EU will impose a port carbon tax soon

The EU plans to include ships heading to European ports in the Carbon Emission Trading System (ETS) program starting from January 1, 2024, with an estimated $3.6 billion in carbon emissions compensation for Europe in 2024. That is to say, shipping companies must purchase carbon compensation for the carbon emissions manufactured by ships sailing between two EU ports; If the EU and non EU ports have ships traveling between them, they must bear 50% of the carbon emission cost.

However, seven EU countries, including Spain and Italy, have recently sent letters to the European Commission calling for the suspension of this plan to prevent shipping companies from avoiding European routes and shifting trade to nearby Mediterranean ports such as Tangier Port in Morocco or Said Port in Egypt, which are less than 300 nautical miles from the EU coast. According to the latest estimate from a shipping consulting company, assuming a carbon price of 90 euros per ton, the estimated ETS cost for a container ship sailing between Europe and Asia by 2024 will be as high as 810000 euros. Despite the high cost of ETS, it is reported that Maersk, the leading container company, had a profit of up to $30 billion last year. The bills generated by ETS are actually only a drop in the bucket compared to international shipping revenue, so it may not have a significant impact on terminal prices. However, some EU countries located along the Mediterranean coast, including Portugal, Greece, Cyprus, and others, have publicly stated that the ETS plan that takes effect in 2024 may transfer carbon emissions to other parts of the world, and companies may take longer routes to avoid docking at EU ports, which may increase greenhouse gas emissions as a result.

How to deal with EU carbon barriers

It is recommended that export enterprises keep an eye on changes in relevant international regulations and policies. The issue of carbon emissions is an ongoing matter, and the relevant regulations, policies, and implementation rules of countries, regions, and industries around the world are constantly changing and expanding, posing challenges to the carbon emission management capabilities of enterprises. Those world-renowned and highly credible certification bodies not only provide standard certification services to enterprises, but also provide advice to standard setting and policy publishing organizations, participating in the formulation of standards and policies. In practice, it is recommended that export enterprises communicate with trade partners and choose third-party certification agencies recognized by the import regulatory authorities to provide consulting services.