Starting next year, the European Union’s emissions trading system will be extended to the maritime sector. The additional cost leads to an increase in the price of ship tickets and the shipping industry fears that this money will not return to them for the development of green technologies.
The European Union’s carbon trading system forces many companies to pay for every ton of CO2 they produce. From next year, shipping companies will have to purchase emission quotas, initially to the extent of 40% of all emissions generated, but the following year to the extent of 70%, and from 2026 the quota will have to be purchased to cover all emissions generated .
The shipping company Tallink has already calculated the possible additional cost resulting from the carbon quota.
“In a way it is difficult to calculate it in numbers, we rely on the stock market price. For today’s cost, we estimate that next year this additional cost will be in the order of 12 million euros. From there on in correlation [kvoodi hinnaga] will increase,” said Paavo Nõgene, CEO of the company.
It is difficult to predict the price of the CO2 quota, which fluctuates on the stock market, so it is equally difficult to take into account the resulting costs. At the same time it is clear that the additional cost makes the ticket more expensive, says Nõgene.
“It varies from line to line. At the moment, on the Tallinn-Helsinki line, we have predicted that it will be 90 cents for one direction, on the Tallinn-Stockholm line, 2.50 euros. This may vary depending on how the price of this fare of CO2 will shift. This does not only concern passengers, of course it also applies to passenger cars and freight transport. So that everyone receives their share of this new state tax”, said the head of Tallink.
Nõgene highlighted that Tallink invests every year to make ships more environmentally friendly.
“As you know, the Baltic Queen arrived at the dock in September and we replaced the propellers along with the blades. This saved more than 13% in terms of fuel,” he explained.
Since these costs are also high, it is the desire of the maritime sector that the money raised from emissions allowances be redirected to the sector to help make these investments. Part of this money goes to the European Union Innovation Fund, which finances the development of green technologies. The use of the rest is up to the member states themselves, the European Union only recommends that this money be redirected to the maritime sector.
For example, in the case of the emissions trading system currently in place in Estonia, not all euros are considered to be directly returned to the sectors. Maritime affairs can be handled differently, said Kaupo Läänerand, vice-chancellor of the climate ministry, but it has not yet been decided: “I would like to believe that when the nature of the climate law is ready, the state will also have a position, which is was established in collaboration with the private and public sector, where exactly [raha] use.”
Currently, immediately useful investments are, for example, the replacement of propellers or other measures that reduce the fuel consumption of ships, Läänerand explained.
“But at a certain point, shipowners cannot avoid a major replacement of the main engine, switching to new fuels. These technologies exist, it is just a question of price. I believe this is also the reason why the sector expects a lot clearly the earnings collected Revenue will return to support the reconstruction,” the vice-chancellor said.
Nõgene is not as convinced of the maturity of new technologies.
“The shipyards, if you ask them what energy source the ships sail on, if you want to order a ship in ten years, they say that they don’t know yet. The sector is developing, but at the moment, unfortunately, It must be said that the taxes they come before technology.”
2023-12-12 04:57:00
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