As of 30 January 2024, a EU decision has assigned administering authorities to shipping companies, marking one of the final stages in the implementation of the Emissions Trading System (ETS) within the Union. This decision establishes a system for trading greenhouse gas emission allowances (EUAs).
Specifically, the #EU issued a list of shipping companies, specifying the administering authority for each in accordance with Directive 2003/87/EC of the European Parliament and of the Council. Consequently, each shipping company has been allocated a country in which to open their Maritime Operator Holding Account (MOHA) and eventually surrender EUAs.
The effective functioning of a market enabling the trading of EU emission allowances (EUAs), as well as EUA futures and other derivatives, is crucial for achieving the EU’s climate objectives. This is particularly important given the uncertainties surrounding the energy transition and the necessity to attract significant new investment.
EU Allowances (EUAs) are a type of carbon allowance that allows companies covered by the #EUETS to emit a certain amount of CO2e. EUAs can be bought and sold on the market, and the variable market price of EUAs reflects the cost of reducing emissions.
According to #DNV, the introduction of the EU ETS for shipping will mean an additional 80 million EUAs will be put on the market in 2024. Of these, auction revenues from about 20 million allowances will go to the Innovation Fund to be used for shipping specific projects and the remaining revenues to EU and EEA member states.
Managers and owners can now finalize decisions regarding the responsible party, document these decisions, and proceed to open the MOHA. Existing trading accounts opened in other countries will continue to operate alongside the assigned MOHA countries. However, for administrative ease, it may be preferable to open a trading account in the same country as the MOHA, especially if one has not yet been established.
Find more information here https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L_202400411
Source: Safety4sea
