A European agreement was reached in December 2022 on the expansion of the European emissions trading system (EU ETS) to include the shipping sector, regardless of the flag they fly . This means many large seagoing vessels (above 5000 gross tonnage) will fall under the EU ETS.
This will cap maritime transport emissions as part of the overall ETS cap, which will result in a price signal that should incentivise improvements in energy efficiency and low-carbon solutions and reduce the price difference between alternative fuels and traditional maritime fuels.