Carbon Emissions
To date, only the EU has implemented "Market Based Measures" for taxing carbon emissions, which took effect on January 1, 2024. Other nations, including the USA, are evaluating similar measures, signaling a broader carbon market that will have a significant impact on global shipping. It remains unclear how the funds generated (estimated in the tens of billions of dollars annually) will be utilized to meaningfully address climate change in a positive way.
Understanding EU Emissions Trading
- The EU ETS works on the "cap and trade" principle, where a cap will be set on the total amount of GHG emissions that can be emitted by a ship.
- Over time, the cap will be reduced allowing total emissions to fall.
- Within the cap, operators, will be able to buy or receive emissions allowances (EUAs) which they can trade with one another.
- At the end of each year an operator must surrender sufficient emission allowances to cover their own ships’ emissions, otherwise heavy fines will be imposed.
- If an operator reduces their emissions, they can keep the spare allowances to cover future needs or sell them in the open market.
- Whether a charterer has operated a ship during whole or part of a year, the shipping company remains responsible for surrendering the emission allowance to the Administering Authority (AA). The shipping company will be entitled to claim reimbursement from the charterer for the EU ETS costs accrued from the charter time.
The Emissions Team
![Simon Cass](https://www.quincannon.com/hubfs/Website%20Employee%20Headshots/DB_Simon_Cass_1x.jpg)
Simon Cass
Managing Director
![Simon Cass](https://www.quincannon.com/hubfs/Website%20Employee%20Headshots/DB_Simon_Cass_1x.jpg)
Simon Cass
Managing Director
Simon Cass provides experience from 3 regions including Europe, Australasia, and the Middle East, and across multiple tanker sectors. Simon has a broad knowledge base and connections to serve in his position as the Managing Director of Quincannon Associates in Dubai. Adopting a collaborative approach, Simon enjoys leveraging the unique in-house expertise and energetic team of Quincannon, which is there to render intelligent, diligent and creative support to principals in the region and globally. A strong believer in being ahead of the game, this approach helps clients tackle the issues of the modern shipping industry, such as emissions regulation, a challenge and opportunity for the chemical tanker sector.
+971 (0) 54 310 1390
scass@quincannondmcc.com
![Theano Karathanasi](https://www.quincannon.com/hubfs/Website%20Employee%20Headshots/DB_Theano_Karathanasi_1x.jpg)
Theano Karathanasi
Ship Broker
![Theano Karathanasi](https://www.quincannon.com/hubfs/Website%20Employee%20Headshots/DB_Theano_Karathanasi_1x.jpg)
Theano Karathanasi
Ship Broker
Aspiring to grow as a Ship Broker, Theano recently moved to Dubai from Athens. She garners a few years' experience in the shipping industry from being involved in the operations of products and chemicals, analyzing voyages, and supporting the commercial management team of a Greek ship owner. She has a strong interest in how data and new technologies can transform shipping. She is a top graduate with a BSc in Finance, an MSc in Shipping, and holds a diploma in Tanker Chartering from ICS.
+971 55 659 9352
tkarathanasi@quincannondmcc.com