EUROPEAN UNION EMISSIONS TRADING SYSTEM UNDER IMO RULES 2023 AND ITS EFFECT ON DRY BULK MARITIME TRANSPORT MARKET PARTICIPANTS
Abstract
Introduction. This article examines the effect of the European Union Emissions Trading Scheme (EU ETS) under IMO rules 2023 on dry bulk maritime transport, with a particular focus on chartering practices. The EU ETS, which is entered into force on 1 January 2024, aims to reduce carbon emissions by integrating maritime transport into its regulatory framework. Objective. The study examines the immediate and long-term challenges faced by bulk maritime transport companies in overcoming the complexities of compliance with the scheme. It contributes to a deeper understanding of the impact of the scheme on maritime transport and offers practical recommendations for industry stakeholders to improve compliance and operational efficiency. Results. The specific regulatory changes introduced by the IMO 2023 updates on GHG emission reductions are analyzed and how they differ from previous regulations; the role of EEXI and CII in the context of GHG emission reductions is clarified; the expected economic consequences of the updated rules for dry cargo owners and operators are assessed, in particular in terms of daily operations, costs and profitability, and the level of impact of the new rules on the competitiveness and market positioning of shipbroking companies in the dry bulk sector, taking into account their interaction with dry cargo owners and operators, is determined. Conclusions. The main stakeholders in addressing the research question, the level of their interests and their impact on the functioning of the ETS are characterized. The implementation of the EU ETS significantly affects the dry cargo maritime transport and chartering market in financial, operational and strategic aspects. In financial terms, the costs of purchasing EU allowances (EUA) and incorporating CO2 emissions costs into freight rates impose a significant burden on shipping companies, leading to increased freight rates and operating costs.
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References
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