AAL Shipping (AAL), in the project heavy lift carrier sector, has boldly taken the lead by reveal a comprehensive carbon surcharge guidance. This move aims to assist its clientele in navigating the upcoming European Union regulations on carbon emissions, scheduled to take effect from the 1st of January 2024.
Navigating the Seas of Change
The imminent extension of the EU Emissions Trading System (EU ETS) to encompass the maritime industry will significantly impact shipping lanes between Europe and the rest of the world. A fixed charge for every ton of CO2 emitted is set to be implemented, ushering in a new era of accountability for the industry.
AAL’s Response: EU ETS Surcharge (EUETSS)
In anticipation of these regulatory shifts, AAL has introduced what it terms an ‘EU ETS Surcharge’ (EUETSS). This innovative approach will be applied to cargo loaded or already onboard any AAL-operated vessel traveling to or from a European port starting in 2024.
The EUETSS, initiated in August, incorporates a meticulous tracking system. It factors in the current EU Emissions Trading Price, vessel consumption averages, and cargo volume. For Part Cargoes on AAL’s regular trading routes to and from the European continent, the surcharge will be quoted separately from standard freight rates.
Striving for Transparency and Sustainability
For full cargoes, AAL plans to calculate the surcharge based on estimated or actual voyage emissions. This pioneering initiative aligns with the company’s commitment to environmental responsibility and follows their Sustainability Report release in August 2022.
Felix Schoeller, AAL Director and Head of the carrier’s Sustainability Committee, emphasized the importance of staying ahead of regulatory changes. “As the industry continues towards greater sustainability and oversight, it is incumbent upon us to ensure that our customers and other supply chain partners remain ahead of the game and kept fully appraised of how changing regulations will impact their cargo movements.”
Setting Sail into a Greener Future
The EU ETS stands as the world’s first carbon market, launched in 2005 with the aim of reducing greenhouse gas emissions cost-effectively. From January 1st, 2024, all ship operators navigating to or from a European port will be required to monitor and report their emissions, with allowances surrendered as additional charges for every ton of CO2 emitted.
In Schoeller’s words, “The EU ETS is an important step in protecting the environment in which we operate. This surcharge guidance comes on the heels of our latest Sustainability Report in 2022 and is our latest initiative in setting a new precedent for greater sustainability across the global multipurpose shipping sector.”