China’s national ETS – the world’s largest in terms of covered emissions – started operating in 2021. Shipping is not included, for the moment. Learn more about ETS here.

The ETD is the principal taxing scheme used for fossil and low-carbon fuels in EU. Fossil fuels will be taxed more, and renewable low-carbon fuels will receive incentives, including shore power.

It is proposed that carbon pollution from transportation will be taxed by the Environmental Protection Agency (EPA). Impact for shipping is unknown as no details are provided.

EU ETS will serve as a carbon tax for the maritime industry. At current price level, it will increase fuel cost by at least €200 - €300 per mT fuel.