Air Freight News

Update on EU Emission Trading System 〈ETS〉 and Emission Allowance Surcharge

Dec 01, 2023

The ETS is a key tool of the EU’s policy for reducing greenhouse gas (GHG) emissions. As the world’s first major carbon market, it is part of a series of legislative proposals with the main goal of achieving the EU’s climate neutrality by 2050.

ETS is based on a cap-and-trade system, where the cap limits an entity’s GHG emissions, and within this cap, an entity can buy emission allowances. Shipping companies are expected to give enough allowances to cover all their emissions.

The allowance acquisition will trigger an added cost for shipping companies that will be applied as a separate surcharge for cost recovery purposes to all applicable shipments, including Quick Quotes Spot and contracts.

As a note, please keep in mind that the EU ETS is not a sustainable product offered by Hapag-Lloyd.

What is new in Hapag-Lloyd's ETS approach?

Further to our update in September 2023, there are a few more details that we would like to share with you.

ETS values will depend on the port-pair combination. However, the charge only applies if the container is loaded or unloaded in an EEA country. This might influence the ETS amount per container for European Economic Area (EEA) states where the charge applies and are listed below for your reference.

BE – Belgium

BG – Bulgaria

HR – Croatia

CY – Cyprus

CZ – Czech Republic

DK – Denmark

EE – Estonia

FI – Finland

FR – France

DE – Germany

GR – Greece

HU – Hungary

IC – Iceland

IR – Ireland (excl. North Ireland)

IT – Italy

LV – Latvia

LI – Lichtenstein

LT – Lithuania

LU – Luxembourg

MT – Malta

NL – Netherlands

NO – Norway

PL – Poland

PT – Portugal

RO – Romania

SK – Slovakia

SI – Slovenia

ES – Spain

SE – Sweden

Please note that the initial proposed surcharge calculation was impacted by earlier assumptions that were found to be overly optimistic, consequently affecting the final surcharge amount.

The EU Emission Trading System surcharge will be in effect from January 1, 2024. Our website’s tariff section will be updated quarterly with detailed information on geographies and coverage.

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