The European Union’s Emissions Trading System (ETS) will be extended to the shipping sector from January 2024. According to Bertrand Chen, CEO of the Global Shipping Business Network, this carbon tax will inevitably be accompanied by an increase in freight transport costs. But he also believes it will force the industry to decarbonize.
Why is this important?
As in the energy sector itself, decarbonising the maritime sector is likely to come with an increase in costs. As we have seen during the health crisis and post-pandemic recovery, maritime transport is a major contributor to global inflation.In the news: “The decarbonization of shipping will have an inflationary effect… there is no doubt about that,” Chen said on the sidelines of the East Tech West conference CNBC.
- “The EU is going to impose extra costs on the shipping sector. This means that transport will have to take steps now to decarbonise, and this will of course impact all consumers, so people will have to live with that.”
The European CO2 tax
Context: The emission
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