Information on decarbonization. FIT FOR 55: EU ETS and FUEL EU Maritime Directive

The European Union has approved a plan called Fit For 55 with the objective of reducing CO2 emissions by 55% between now and 2030. This plan has two measures that affect maritime transport:

- The European Directive (EU) 2023/959 which includes the maritime sector in a new CO2 emissions pricing system, the “ European Union Emissions Trading Scheme ” (EU ETS).

- Regulation (EU) 2023/1805 on the use of renewable fuels and low-carbon fuels in maritime transport.

The objective of both measures is to accelerate the decarbonization of maritime transport, which the EU considers a “difficult sector to abate”, that is, a sector in which it is especially difficult to eliminate dependence on fossil fuels. It is a goal that Trasmed and the entire Grimaldi group have been working on for years.

EU ETS Regulation

Regarding emissions trading, it is established that, starting January 1, 2024, shipping companies that connect European ports will be obliged to offset the emissions produced with the purchase, in the regulated market European Trading System (EU ETS) of CO2 emission rights (European Union allocation equivalent to 1 ton of CO2 emitted).

The application of the regulation EU STD provides for the obligation to return rights by all shipping companies, with a gradual introduction:

• 40% for emissions produced from 01.01.2024
• 70% for emissions produced from 01.01.2025
• 100% for emissions produced from 01.01.2026

Member States can request a temporary exemption for transport with islands that have a population of less than 200,000 permanent residents. In the case of the Balearic Islands, this exemption would apply to the entire archipelago, with the exception of Mallorca.

In 2026, two other greenhouse gases will also enter emissions trading: CH4, N2O

FUEL EU Regulation

This second measure is more ambitious, but its introduction will be slower. The goal is that, by 2050, 80% of the fuels used in maritime transport are renewable. The first objective is that in 2025 2% of consumption will be of renewable origin

On the other hand, the regulation aims to eliminate emissions in ports from passenger ships and container ships by 2030. To do this, they must be powered by shore electricity or have alternative means.

TRASMED's position

TRASMED belongs to the GRIMALDI group, the largest ro-ro shipping company in the world, which supports the proposed decarbonization measures, as long as they do not distort competition.

For this reason, Grimaldi has been investing for years in the most technologically advanced fleet on the market. It is building the first ships prepared to run on green or renewable ammonia, when this fuel is available. For almost five years, it has stopped emitting in port with its ZERO EMISSIONS IN PORT fleet, which allows the ship to be powered by batteries installed on board during its calls. It is also planned to ground TRASMED ships as soon as the facilities are ready in the different ports where it operates.

The GRIMALDI group has a decarbonization and energy saving department that dedicates all its efforts to minimizing the environmental footprint of our ships.

Frequently asked questions

how does the ETS affect the price of my ticket?

TRASMED may apply an ETS surcharge to passenger tickets, but it will be a minimum amount, since, in conventional maritime transport, emissions per ton transported are the lowest of all means of transport. In any case, it will only apply to connections between the Peninsula and Mallorca

how does the ETS affect the price of freight transportation?

The ETS may be reflected in the freight transport rate, since it will entail an extra cost due to the use of fossil fuels. TRASMED will continue to implement energy saving and emissions reduction measures to minimize the impact of this extra cost. In any case, it will only apply to connections between the Peninsula and Mallorca

how and why does the price of the ETS vary?

The ETS market is a market whose supply is controlled by the EU, which sells these rights to the market at auctions. Each year, the EU will reduce the emission rights it puts into circulation, to converge to the goal of zero emissions.

There is also a secondary market for emission rights. The price is determined by the market based on supply and demand.

what can I do to reduce emissions?

Transporting goods on ships and traveling by ship (except high speed) is the most energy-efficient form of transport, as emissions per ton and kilometer are the lowest among all means of transport.

what is the contribution of maritime transport to CO2 emissions?

Globally, maritime transport contributes less than 3% of greenhouse gas emissions and 2% of CO2 emissions and transports 90% of global trade.

what are other gases and why are the emissions of these gases included in the ETS?

CH4 or methane is the gas that mainly makes up natural gas. It is a gas that is estimated to contribute 25 times more to the greenhouse effect than CO2. It is mainly emitted by ships that use liquefied natural gas (LNG) as fuel.

N2O, nitrous oxide, contributes about 300 times more to the greenhouse effect than CO2. It occurs in the operation of combustion engines, and has been reduced by more than 80% since the 90s by improving engine technologies.

what alternative fuels exist and to what extent are they used?

Various fuels are currently being tested and developed that will help reduce dependence on fossil fuels. Biofuels and synthetic fuels are now available, although production is small and prices are still very high.

Methanol, ammonia and hydrogen, provided they come from renewable sources, are also fuels that will contribute to decarbonization, when they reach a sufficient degree of technological and commercial maturity.