According to reports, ships carrying various items from consumer goods to food and fuel into and out of the European Union will soon face huge emission costs.
The shipping industry will join the EU's emissions trading system in January next year, which means large ships will start paying for carbon emissions. According to Bloomberg New Energy Finance, some major shipping companies such as MSC Mediterranean Shipping and AP Moller Maersk A/S may have costs as high as hundreds of millions of dollars.
Ships carry over 80% of world trade and are also a major source of emissions, emitting approximately 1 billion tons of carbon dioxide into the atmosphere in 2018. The newly introduced system is the world's first large-scale carbon charging for international shipping, and is also part of the EU's green driving force in addressing climate change. However, despite its huge scale, the charging standards are unlikely to be high enough to force people to immediately switch to using cleaner marine fuels.The EU emissions trading system will increase shipping costs, "said Tore Longva, decarbonization director of DNV Classification Society. But he said that ship supply and demand may have a greater impact on shipping costs.
According to DNV data, assuming a carbon market price of 90 euros per ton, the total emission cost for a container ship sailing between Europe and Asia next year is approximately 810000 euros (864500 US dollars). In the next two years, companies will have to bear a larger share of emissions, which means the costs should be higher.
Example operation instructions:
A ship carrying 5000 standard size containers between the European Union and Asia generates approximately 40000 tons of carbon dioxide per year. But as the journey extends beyond Europe, only half of the emissions need to be covered.
This means paying the cost of 20000 tons of carbon dioxide, plus an additional 2500 tons of carbon dioxide emitted by ships during their stay at European ports. In the first year, 40% of eligible emissions require payment, so the ship will face the cost of 9000 tons of carbon dioxide.
Assuming a carbon price of 90 euros per ton, or 810000 euros.

By 2025, this number will increase to 1.4 million euros, which must cover 70% of emissions; By 2026, this number will increase to 2 million euros, at which point all emissions will be charged (assuming a carbon price of 90 euros).
This regulation applies to ships of 5000 gross tons and above, and applies to ships entering and exiting ports in the European Union and the European Economic Area.
However, the plan may take some time to truly achieve its emission reduction goals. Longva stated that at a carbon price of around 90 euros, using polluting petroleum fuels and paying for emissions is still cheaper than using more expensive marine biofuels.
Despite the eye-catching additional costs, shippers have found that the significant fluctuations in fuel prices in recent years far outweigh the upcoming carbon emissions tax.
For example, a carbon price of 90 euros is equivalent to a fee of less than 300 per ton of petroleum fuel burned