CMA CGM said the significant upcoming changes to the EU Emissions Trading System (EU ETS) regulation will impact its operations and raise its current EU ETS surcharges.

The global supply chain player — which offers land, air, and logistics solutions — said starting in 2025, the EU ETS regulation will evolve to account for 70% of our emissions, compared to the current 40% in 2024.

"This substantial increase in the percentage of emissions covered by the EU ETS will have a direct impact on our cost structure," CMA CGM said, adding that by 2026, the EU ETS regulation will account for 100% of our emissions.

"As a result of this regulatory change, we anticipate an increase of approximately 75% in our current EU ETS surcharge amounts."

"Please note that this estimate does not consider potential fluctuations in CO2 prices, which could further influence the final surcharge amounts," it added.

The EU ETS requires ocean carriers to monitor and report their CO2 emissions from voyages to and from EU ports.

Starting in 2024, a portion of these emissions will be subject to the cap-and-trade system, meaning carriers will need to buy or receive allowances to cover their emissions.

This regulation aims to incentivize the reduction of greenhouse gas emissions in the maritime sector, encouraging investment in more efficient and environmentally friendly technologies and practices.

CMA CGM said the EU ETS is a cornerstone of the EU's policy to combat climate change and reduce greenhouse gas emissions cost-effectively.

The changes in the regulation reflect the EU's commitment to achieving its climate goals and ensuring a sustainable future.