MSC advisory on EU ETS regulation changes

MSC has issued an advisory to inform customers of upcoming adjustments to the European Union Emissions Trading System (EU ETS) that will take effect on 1 January 2026.

The revised regulation will significantly expand compliance requirements for shipping lines serving EU and EEA ports.

Beginning in 2026, carriers will be required to account for 100% of emissions, compared with 70% coverage in 2025. This increased scope will lead to higher operational and administrative costs for regulatory compliance.

Moreover, to recover these additional expenses, MSC will introduce an EU ETS surcharge that will apply to cargo moving within the affected geographical scope.

The surcharge is intended to support cost recovery in a similar way to existing regulatory surcharges already familiar to customers.

The surcharge will vary depending on the market value of carbon allowances traded within the EU ETS system. MSC will use the same cost-recovery principles currently applied to the Bunker Recovery Charge, ensuring transparent and consistent pricing.

As market conditions evolve, surcharge amounts may be adjusted, and MSC will continue to communicate any relevant updates regarding the implementation of EU ETS and its impact on shipping costs and service arrangements.

Customers are encouraged to monitor upcoming advisories from MSC to stay informed as the effective date approaches.