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Study Raises Doubts Over EU ETS Carbon Cost Recovery
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Ship & Bunker
Study Raises Doubts Over EU ETS Carbon Cost Recoveryby Ship & Bunker News TeamThe academic research questions whether the EU's statutory reimbursement right.
File Image / PixabayA new academic study has raised questions over whether shipping companies can reliably recover EU emissions trading costs from charterers under the EU ETS.
The study, by Erasmus School of Law at Erasmus University Rotterdam, found the reimbursement mechanism faces significant practical hurdles.
“For most of the market, effective cost recovery still depends entirely on what is negotiated into the charterparty, not on the statutory right at all.”
Authors said the findings highlight the importance of negotiating clear carbon cost allocation clauses in charterparties and other shipping contracts rather than relying on the EU directive.