The European Parliament unexpectedly rejected a proposal to upgrade the European Union’s Emissions Trading System on Wednesday. MEPs argued that it failed on climate ambition. Shipping inclusion does not seem to be questioned.

The unexpected rejection seems to be caused by disagreements over climate ambitions. A main disagreement concerned the share of quotas and the emissions reduction targets in the system. According to current reports the inclusion of shipping into the ETS does not seem to have raised major debates, despite that the European Parliament’s environmental committee (ENVI) some weeks ago voted to speed up the inclusion.

According to Reuters negotiators will attempt to reach a new deal by June 2023. EU is racing to finish the law this year, so that it can apply in 2023.

Are you wondering how the inclusion of shipping in the ETS will impact freight rates in general or do you want to understand the carbon exposure of your current shipping program, future voyages or FFAs?