Expansion of the Emissions Trading System in the European Union

The European Union (EU) has a major goal - to make Europe climate neutral by 2050. In order to achieve this, the EU Commission has created a comprehensive plan of measures called the "Green Deal". European transport modes - and thus shipping, are also included in this plan. According to the Green Deal, transport-related emissions are to be reduced by 90 percent by 2050. European maritime transport causes about 13 percent of the total greenhouse gas emissions in the transport sector.

Through various measures initiated by the EU and the International Maritime Organization, the industry has already been working for years to reduce the resulting emissions. In order to further reduce CO2 emissions, the EU has decided to extend the European Emissions Trading System (EU ETS) to maritime transport in 2024. So far, this has been an instrument for air traffic in Europe.

From 2024, operators of large ships arriving at EU ports will gradually have to buy emission allowances for greenhouse gas emissions. Accordingly, all voyages between EU ports and half of the route between an EU port and a third-country port will be subject to the Emissions Trading System (ETS). The emissions trading obligation will be introduced in stages. In 2024, ship operators will have to buy pollution allowances for 40 percent of their emissions volume. In 2025, this will then rise to 70 percent, and from 2026, all emissions will be subject to a charge. Among others, the majority of the revenue from the emission allowances is to be used to develop low-emission propulsion solutions in the shipping industry. Ocean carriers are currently preparing for implementation and have already announced, in some cases, that they will pass on costs to the industry.

If you are generally interested in the topic of sustainability in sea freight, DACHSER also offers Sustainable Maritime Fuel (SMF).

In case you have any questions on this topic or on the EU ETS, please get in touch with your contact person at the DACHSER branch responsible for you.

DACHSER worldwide

Contact Vernice Chu Communications Manager Asia Pacific

vernice.chu@dachser.com

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09/01/2020

While the trade negotiations between the UK and the European Union continue to make slow progress, the month of June provided the last opportunity for the British government to extend the transitional period, which is currently limited to 31 December 2020. With no request for extension having been made, the focus is now on a gradual introduction of customs controls in the United Kingdom from January 1, 2021. The transition period is designed to allow traders to recover from the effects of COVID-19 and prepare for the new requirements. The United Kingdom will be subject to full customs control at its borders by 1 July 2021.

Earlier this year, the UK government took steps to eliminate certain customs facilitations, including the Transitional Simplified Procedures (TSP) and the Import VAT (PVA) shift. However, the British government has recognized that customs relief will also be necessary, at least temporarily, on January 1, 2021.

Thus, the possibility of shifting the import turnover tax is to be reintroduced. In addition, for a transitional period, there will be a customs procedure which will allow the imported goods to be declared by entering them in the accounts within a period of six months, rather than immediately upon importation. This procedure is called "Deferred Declaration".

An EU summit meeting for final talks between Great Britain and the EU will take place from 17 to 18 October 2020. Finally, on 19 October 2020 the results of a "deal or no-deal" scenario should be available.

Regardless of the outcome of the talks, it is expected that from January 2021 onwards all goods exported to and from the UK will require tariff treatment, albeit during the transitional period described above as part of a process graduated by product group.

The following link will take you to a tool that outlines the required measures: https://www.gov.uk/transition

The UK government has also published details of preparation as an importer and exporter from/to the UK, which can be viewed via the links below:

https://www.gov.uk/prepare-to-import-to-great-britain-from-january-2021

https://www.gov.uk/prepare-to-export-from-great-britain-from-january-2021

Further information can be found in the download document below.

If you have any further questions, please do not hesitate to contact your local contact at the relevant DACHSER branch.

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Expansion of the Emissions Trading System in the European Union

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