The EU Emissions Trading Scheme (“ETS”)
The EU is setting up a “cap and trade” scheme which will come into effect from 2022. All ships trading to/from/within the EU will have to comply with an emissions cap and carbon credits will be traded to allow emissions within the cap.
The scheme is likely to raise a number of contractual issues which we will consider in due course once further details of the scheme are known later in 2021. Meanwhile, these are summarised in our overview of the green transition here.
More information on the scheme, including the current ETS handbook, can be found here.