Special Announcement

The European Union’s Emissions Trading System (EU ETS) was extended to cover emissions from shipping as of 1^st January 2024.

The EU ETS is limited by a 'cap' on the number of emission allowances. Within the cap, companies receive or buy emission allowances, which they can trade as needed. The cap decreases every year, ensuring that total emissions fall.

Each allowance gives the holder the right to emit:

One tonne of carbon dioxide (CO2), or;
The equivalent amount of other powerful greenhouse gases, nitrous oxide (N2O) and perfluorocarbons (PFCs).
The price of one ton of CO2 allowance under the EU ETS has fluctuated between EUR 60 and almost EUR 100 in the past two years. The total cost of emissions will vary based on the cost of the allowance at the time of purchase, the vessel’s emissions profile and the total volume of voyages performed within the EU ETS area. The below is for illustration purposes:
~A 30.000 GT passenger ship has total emissions of 20.000 tonnes in a reporting year, of which 9.000 are within the EU, 7.000 at berth within the EU and 4.000 are between the EU and an outside port. The average price of the allowance is EUR 75 per tonne. The total cost would be as follows:
~~9.000 * EUR 75 = EUR 675.000
~~7.000 * EUR 75 = EUR 525.000
~~4.000 * EUR 75 * 50% = EUR 150.000
~~Total = EUR 1.350.000 (of which 40% is payable in 2024)
For 2024, a 60% rebate is admitted to the vessels involved. However, this is reduced to 30% in 2025, before payment is due for 100% with effect from 2026.
Emissions reporting is done for each individual ship, where the ship submits their data to a verifier (such as a class society) which in turns allows the shipowner to issue a verified company emissions report. This report is then submitted to the administering authority, and it is this data that informs what emission allowances need to be surrendered to the authority.
The sanctions for non- compliance are severe, and in the case of a ship that has failed to comply with the monitoring and reporting obligations for two or more consecutive reporting periods, and where other enforcement measures have failed to ensure compliance, the competent authority of an EEA port of entry may issue an expulsion order. Where such a ship flies the flag of an EEA country and enters or is found in one of its ports, the country concerned will, after giving the opportunity to the company concerned to submit its observations, detain the ship until the company fulfils its monitoring and reporting obligations.
Per the EU’s Implementing Regulation, it is the Shipowner who remains ultimately responsible for complying with the EU ETS system.

There are a number of great resources on the regulatory and practical aspects of the system – none better than the EU’s own:

‍https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02003L0087-20230605

‍https://climate.ec.europa.eu/eu-action/transport/reducing-emissions-shipping-sector_en

‍https://climate.ec.europa.eu/eu-action/eu-emissions-trading-system-eu-ets/what-eu-ets_en

Since the birth of the company in 1959 P.L. Ferrari & Co has grown under his stewardship to become today the leading independent specialist P&I broker in the world. From humble origins as a “one man organisation” in Pier Luigi’s home P.L .Ferrari & Co today operates from its main office in Genoa with branch offices in Monaco Piraeus Naples London and a representative office in Istanbul.
From the very outset Pier Luigi had a vision to deliver a first class complete P&I broking service to the Italian shipping community and he has dedicated over 50 years to delivering the provision of unparalleled quality of service: a service which is today recognised worldwide.
From that “one man band” P.L. Ferrari & Co. now employs over 70 people dedicated professionals proud in serving an international and prestigious portfolio of ship owners and ship operators.
The early years were pioneering years.
Those were the days when a business trip to London to talk to underwriters at the P&I clubs would take Pier Luigi a whole week boarding the train from Genoa with connections through to Paris the ferry across the Channel to Dover and the train again to London. For London underwriters that visited Pier Luigi and shipowners in Genoa there were similar exotic transportation experiences not least riding pillion on Pier Luigi’s Vespa as the young broker sped from one meeting to another.
Pier Luigi retires from the company leaving a legacy which is not simply represented by the company name. P.L. Ferrari & Co stands for commitment and quality. The seed planted by Pier Luigi in 1959 has developed today into a strong oak with solid foundations. A strong and stable professional team of matured and unrivalled experience in the market across all aspects of the P&I service from insurance placement entries certification and accounts to a full “hands on” claims handling service.
When the authorative history of P&I is written it will be told that Pier Luigi can pride himself on being arguably the first specialist P&I broker of the modern era not only in Italy but also in the world.
Federico Deodato MD and CEO all the P.L. Ferrari & Co partners and staff will continue to dedicate their efforts in upholding the vision and values of Pier Luigi. We are proud to be the custodians and guarantors of Pier Luigi’s ethos for the continuation of the Company’s philosophy of service into the future.
We all wish to express and extend our sincere gratitude to Pier Luigi for what was a very good idea in 1959 and remains even more valid in 2011. We extend our heartfelt best wishes for the years to come. We shall be missing him and we are sure all others who have had the luck of knowing him will do the same.
Grazie Pier Luigi!

Pier Luigi Ferrari fondatore ed attuale Presidente della P.L. Ferrari & Co dopo 52 anni dall’inizio della sua attività si ritirerà il prossimo 31 Dicembre 2011.
Sin dall’inizio della sua attività nel 1959 la guida di Pier Luigi ha consentito alla P.L. Ferrari & Co di crescere fino a diventare oggi leader mondiale come broker indipendente specializzato nelle coperture P&I . Dalla sua origine di ditta individuale gestita dall’abitazione di Pier Luigi oggi P.L. Ferrari & Co opera dalla sede principale di Genova dagli uffici di Napoli Monaco Pireo e Londra e dal suo ufficio di rappresentanza a Istanbul.
P.L. Ferrari & Co impiega oggi 70 persone specializzate ed orgogliose di fornire un servizio esclusivo al prestigioso portafoglio di armatori ed operatori nel campo dello shipping.
Fin dagli albori la visione di Pier Luigi è stata quella di creare una realtà in grado di fornire al mercato Italiano e successivamente a quello internazionale servizi specialistici nell’intermediazione delle assicurazioni P&I e nella gestione dei reclami.
Dopo oltre 50 anni Pier Luigi può dirsi fiero di aver ampiamente realizzato il suo sogno considerato l’odierno indiscusso riconoscimento in tutto il mondo della qualità dei servizi resi dalla P.L. Ferrari & Co.
I primi anni furono pioneristici ed oggi Pier Luigi può essere orgoglioso di aver creato il primo broker P&I specialistico non solo in Italia ma anche in Europa e nel mondo .
In quei giorni lontani un viaggio a Londra per incontrare i P&I Clubs era ancora un’avventura. Erano i giorni in cui si viaggiava in treno via Parigi e via mare fino a Dover. Anche i funzionari dei Clubs in visita in Italia vivevano con lui esperienze insolite nella metropoli londinese ad esempio sul sellino posteriore della Vespa con cui il giovane Pier Luigi scorrazzava rapidamente da una riunione all’altra.
Pier Luigi ci lascia un’ eredità che non è semplicemente rappresentata dal nome dell’azienda. P.L. Ferrari & Co è sinonimo di impegno ed eccellenza nel servizio. Il seme piantato nel lontano 1959 è oggi diventato una forte e robusta quercia con profonde radici.
Un team di professionisti di vasta esperienza cura scrupolosamente il piazzamento delle coperture P&I dei nostri clienti il controllo della contabilità della documentazione e delle relative certificazioni e fornisce costante assistenza nella gestione dei reclami.
Federico Deodato i soci e tutto lo staff della P.L. Ferrari & Co continueranno con lo stesso impegno per mantenere e sviluppare anche in futuro il prestigio di cui P.L. Ferrari & Co oggi gode sul mercato ed i suoi valori . Siamo orgogliosi di essere i custodi ed i garanti dell’etica e della filosofia di servizio che Pier Luigi ci ha trasmesso e che in questa azienda non verranno mai meno.
Federico Deodato assieme a tutti i soci ed a tutti i collaboratori della P.L. Ferrari & Co testimoniano la loro sincera gratitudine a Pier Luigi per il suo intuito iniziale e per aver realizzato con noi questo progetto. Auguriamo a Pier Luigi serenità ed ogni bene per gli anni a venire.
Grazie Pier Luigi!

This Newsletter, and our information archive, can also be accessed at www.locktonplferrari.com

Lockton P.L. Ferrari & CO S.r.l.

Lockton P.L. Ferrari – A Member of the Lockton Group of Companies This newsletter is intended solely as an overview of the marine market and does not constitute any form of advice. It is based on sources believed to be accurate at the time of printing and we cannot be held liable for the omission of any information within the newsletter.

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Special Announcement

The European Union’s Emissions Trading System (EU ETS) was extended to cover emissions from shipping as of 1st January 2024.

Special Announcement

The European Union’s Emissions Trading System (EU ETS) was extended to cover emissions from shipping as of 1^st January 2024.