by Lloyd's List
8 October 2024 (Lloyd's List) - SHIPPING CO2 emissions in the European Union fell 8% on the year to 127m tonnes in 2023, as most vessel segments registered lower emissions on the back of falling trade in the bloc, according to EU monitoring, reporting and verification data.
EU countries experienced lower imports in the past year, while exports also fell slightly on the year. Maritime transport makes up about two thirds of total EU trade.
Dry bulk vessel emissions dipped by 23% year on year in 2023, while containership emissions fell by 6%.
Dry bulk goods handling at EU ports fell 9% on the year in 2023, while the handling of large containers and liquid bulk was 4% and 3.7% lower, respectively, according to Eurostat.
Tankers and gas carriers made up the biggest share of CO2 emissions in 2023, with 37m tonnes, followed by containerships, with 36m tonnes, while dry bulk came in third with 15m tonnes.
The EU will continue to revise emissions data as some shipping companies submit data late. EU MRV compiles emissions data from vessels 5,000 gt and above on all voyages that include at least one EU/European Economic Area port.
EU shipping emissions had reached a three-year high in 2022.
EU's emissions data was in line with the International Maritime Organization's Data Collection System emission statistics. Global shipping emissions fell 1.3% on the year in 2023 to 656m tonnes, according to the IMO.
Total fuel consumption on EU voyages reached 40.9m tonnes in 2023, compared with 44.3m tonnes in 2022, EU MRV data shows.
Alternative fuel bunkering had a negligible impact in 2023, as emissions and fuel consumption data pointed to an average bunker fuel CO2 intensity of 3.10, equivalent to heavy fuel oil's emission factor.
Emissions have likely risen in 2024 owing to Red Sea disruption prompting ships to sail around Africa to avoid attacks by Yemen's Houthis. Vessels require more fuel to complete the longer voyage, further increasing emissions.
EU ETS tax cost estimates
Shipping's EU Emissions Trading System tax bill would amount to $2.6bn (€2.4bn) based on emissions data from 2023 and EU Emissions Allowance (EUA) prices of €70 per tonne of CO2 equivalent, according to Lloyd's List Intelligence estimates based on 40% of all 2023 emissions.
The ETS tax kicked in this year, with a three-year phase in period that will account for 40% of shipping emissions in 2024, then rising to 70% in 2025 and 100% in 2026.
These tax costs could mean shipping pays $6.6bn (€5.98bn) in 2027 when 100% of emissions will be accounted for, based on EUA prices of €70 and 2023 emissions data.
ETS tax costs could fall further because of weaker EUA prices, as Ice Exchange data showed EUA values holding below €70 since early September, dropping as low as €61 on October 7.
