EU ETS Quickscan

The EU ETS (EU Emission Trading System) is a market instrument used by the EU to reduce greenhouse gas emissions. It is a ‘cap and trade’ system of allowances with a maximum amount of allowable emissions for participants. One allowance equals the right to produce 1 metric tons of CO2-equivalent. This right can be traded. For shipowners however, there will be no rights to be traded. Shipowners will de facto pay a ‘carbon tax’ from the get go.




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