Europe's shipping industry will receive its first invoice under the EU Emissions Trading System on September 30, with operators required to cover 40 per cent of 2024 emissions, reports the Cyprus Mail.

Drewry data shows 13,000 ships emitted 90 million tonnes of CO2 last year, up 14 per cent on 2023 due to Red Sea diversions. With EU carbon allowances at about EUR70 (US$81.30), the bill is estimated at $2.9 billion. The containership sector, responsible for 34 per cent of reported emissions, faces average annual compliance costs of $500,000 per vessel.

The burden will rise to 70 per cent of 2025 emissions before full scope in 2027, with annual costs forecast at $7.5 billion. Non-compliance carries a EUR100 (US$116)-per-tonne penalty plus the cost of missing allowances.

The UN's International Maritime Organisation's Net Zero Framework, due for adoption in October, would be the first global carbon pricing scheme for a single industry. The EU plans to align its rules to avoid double levies.

Cyprus, hosting the EU's third-largest merchant fleet, has issued compliance guidance and promotes its EU-approved tonnage tax regime, which applies to Cyprus- and foreign-flag ships, charterers and related profits. Shipping contributes about 7 per cent of GDP, EUR10 million in annual fees and taxes, and supports 4,500 onshore jobs plus 55,000 seafarers.