Europe Sets Course for Stringent Emissions Legislation Impacting Shipping Industry

Trade & Border IssuesHot SpotsRegulationsComplianceNuts & Bolts
Written By Jennifer Joslyn

🚢 Europe Sets Course for Stringent Emissions Legislation Impacting Shipping Industry.

Ships transporting goods in and out of the European Union will soon face significant emissions-related costs as they join the bloc's Emissions Trading System (ETS) starting in January 2024. This means that large vessels will be required to pay for their carbon emissions, with some major freight companies, such as MSC Mediterranean Shipping Company and A.P. Moller-Maersk, potentially facing costs reaching hundreds of millions of dollars. While this marks the world's first large-scale carbon charge for international shipping and aligns with the EU's environmental goals to combat climate change, the fees are not expected to immediately drive a shift towards cleaner marine fuels.

Read more from Supply Chain Brain ▶

Featured
EU's Deforestation Crackdown is Underway
EU's Deforestation Crackdown is Underway

Deforestation is a major global problem, with agriculture responsible for a whopping 90% of it.

EU's Corporate Accountability Directive Stalled by Member States Amidst Opposition
EU's Corporate Accountability Directive Stalled by Member States Amidst Opposition

European Union countries hit a roadblock on Wednesday as they halted the progress of new regulations aimed at making large companies accountable for potential forced labor and environmental harm in their supply chains.

Investor Groups Advocate for EU's Corporate Sustainability Directive Amidst Opposition
Investor Groups Advocate for EU's Corporate Sustainability Directive Amidst Opposition

Investor groups are urging EU countries to support a proposed law, the Corporate Sustainability Due Diligence Directive, which would hold large companies accountable for environmental and human rights violations in their supply chains.

Russia Accused of Orchestrating Migrant Surge at EU's Eastern Frontier, Prompting Border Closure Threats
Russia Accused of Orchestrating Migrant Surge at EU's Eastern Frontier, Prompting Border Closure Threats

Estonia's foreign minister, Margus Tsahkna, has accused Moscow of orchestrating a "blatant hybrid attack" by facilitating a surge in migrants from Africa and the Middle East arriving at the EU's eastern frontier.

France, Germany, and Italy Challenge EU's Draft AI Legislation, Threatening Regulatory Deadlock
France, Germany, and Italy Challenge EU's Draft AI Legislation, Threatening Regulatory Deadlock

France, Germany, and Italy have opposed the EU's draft AI legislation, particularly regulations concerning "foundation models" that underpin large AI language models.

27 Countries, Including US and China, Sign Bletchley Park Declaration on AI for Responsible Development
27 Countries, Including US and China, Sign Bletchley Park Declaration on AI for Responsible Development

The United States and China, along with 27 other countries and the EU, have signed the Bletchley Park Declaration on AI during a two-day AI Safety Summit held in the UK.

Germany Allows France to Subsidize Nuclear Plants
Germany Allows France to Subsidize Nuclear Plants

Germany has allowed France to use state subsidies for its nuclear power plants, breaking a deadlock in EU electricity market reform discussions.

Belgian Intelligence Probes Logistics Hub of China's Alibaba at Local Airport
Belgian Intelligence Probes Logistics Hub of China's Alibaba at Local Airport

Belgium is investigating potential security risks related to China's Alibaba Group's presence at Liège Airport, where its main European logistics center is located.

EU Electric Car Regulations Pose Billions in Costs for Carmakers
EU Electric Car Regulations Pose Billions in Costs for Carmakers

New Brexit trade rules related to electric vehicles could impose a significant financial burden on European auto manufacturers, potentially costing them £3.75 billion ($4.58 billion) over the next three years, as reported by BBC News.

Europe's Alarming Air Pollution Crisis: 98% Exposed to Dangerous Levels
Europe's Alarming Air Pollution Crisis: 98% Exposed to Dangerous Levels

Europe is grappling with a severe public health crisis as nearly everyone on the continent resides in areas plagued by dangerous air pollution levels, according to an investigation by The Guardian.

Europe Sets Course for Stringent Emissions Legislation Impacting Shipping Industry
Europe Sets Course for Stringent Emissions Legislation Impacting Shipping Industry

Ships transporting goods in and out of the European Union will soon face significant emissions-related costs as they join the bloc's Emissions Trading System (ETS) starting in January 2024.

U.S. and EU Collaborate to Reduce Asia's Dominance in the Global Semiconductor Market
U.S. and EU Collaborate to Reduce Asia's Dominance in the Global Semiconductor Market

The U.S. and EU are taking steps to lessen Asia's stronghold on the global semiconductor market. With the shift of semiconductor manufacturing operations to major Asian countries, the U.S. and Europe have faced challenges in maintaining competitiveness.

Moody's Warns of Increased Supply Chain Risk Due to New EU Deforestation Legislation
Moody's Warns of Increased Supply Chain Risk Due to New EU Deforestation Legislation

Moody's has highlighted that the new Deforestation Regulation introduced by the European Union poses a significant risk to European supply chains.

Republicans ask SEC about EU cooperation over ESG rules
Republicans ask SEC about EU cooperation over ESG rules

Republican lawmakers Senator Tim Scott and Representative James Comer have expressed concerns about European Union (EU) environmental, social, and governance (ESG) measures gaining traction in the United States.

Italy Launches €1 Billion Sovereign Fund to Strengthen Critical Supply Chains
Italy Launches €1 Billion Sovereign Fund to Strengthen Critical Supply Chains

Italy has unveiled plans to establish a €1 billion sovereign fund to support strategic companies and enhance domestic production, aiming to strengthen key supply chains.

Comparing the US and Europe: The Electric Vehicle Landscape
Comparing the US and Europe: The Electric Vehicle Landscape

European governments have traditionally been more aggressive in regulating fuel consumption, but the United States is catching up with strict emissions regulations and fines for automakers that fail to meet EV sales targets.

EU Targets Strengthening Supply Chains Against Cyber Threats
EU Targets Strengthening Supply Chains Against Cyber Threats

Under new EU regulations set to come into force in 2024, European transport and logistics firms, including airlines, airports, and shipping lines, will have to bolster their cybersecurity measures.

European Uprising Underway over Electric Vehicles
European Uprising Underway over Electric Vehicles

Ever since the war started between Russia and Ukraine, many European countries have reverted to using coal and other less environmentally friendly practices.

Restrictions on Russian Oil
Restrictions on Russian Oil

Since the European Union banned the shipment of Russian oil, it has disrupted global shipping patterns.

Europe says electric vehicles are proving to be too expensive for the middle class
Europe says electric vehicles are proving to be too expensive for the middle class

Europe has slowed production of lithium-powered cars, their production this year is expected to be over a million cars less than the original estimate.

Italy and Germany team up to change EU’s combustion engine ban
Italy and Germany team up to change EU’s combustion engine ban

Germany, Italy, and some other small eastern European countries have formed an alliance in order to voice opposition to Europe’s ban on combustion engines.

Sennder, Amazon’s European delivery partner, is racing to “uber-ize” freight
Sennder, Amazon’s European delivery partner, is racing to “uber-ize” freight

Sennder is a Berlin-based digital freight forwarder and logistics company that partners with Amazon to provide delivery services in Europe.

U.S. - EU working on preliminary EV mineral agreement
U.S. - EU working on preliminary EV mineral agreement

In the race to fully transition to green energy, investments are rampant on both sides of the Atlantic Ocean to integrate electric vehicles and other sources of clean energy.

EC Digital Products Passports laws, incoming
EC Digital Products Passports laws, incoming

This regulatory framework has been in the works for awhile - a digital product passport developed as a tool to help companies demonstrate compliance with standards.

European middlemen to Amazon are being cut out of the deal
European middlemen to Amazon are being cut out of the deal

The latest effort of Amazon is to cut as many costs as possible, including buying products directly from brands instead of using middlemen.

Increasing electricity bills force EU rail companies to quadruple prices
Increasing electricity bills force EU rail companies to quadruple prices

As a result, many freight companies are reverting to diesel locomotives over electric models in order to reduce substantial operating costs.

European Unions announces truck CO2 emissions cut of 90% by 2040
European Unions announces truck CO2 emissions cut of 90% by 2040

Trucks are being given a bit more grace by the EU to get with the green energy program, but they’re being held to a standard, nonetheless.

European Unions risks transatlantic trade war over clean technology laws
European Unions risks transatlantic trade war over clean technology laws

The Biden Administration’s $500 billion legislation encouraging new spending in the domestic green energy industries may be the final straw for the EU, which unveiled its Green Deal Industrial plan in response.

Trafigura reports that 600 tankers transporting Russian fuel are operating globally
Trafigura reports that 600 tankers transporting Russian fuel are operating globally

Dubbed a “shadow fleet” the crude oil vessels are quietly transporting the EU-banned Russian product.

EU’s Russian fuel ban may cause shortages during NY’s peak season
EU’s Russian fuel ban may cause shortages during NY’s peak season

Seasonal gasoline stockpiles are already at a decade-low, and the ban on Russian fuel means that the East Coasts can’t rely on its backup supplies during the peak driving season over the summer.

Jennifer Joslyn
Previous

Transportation Secretary Buttigieg Faces Congressional Scrutiny Amid Infrastructure Debate
Next

Germany Has Transformed From an Economic Powerhouse to a Downturn