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:
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
Dear All,
Steamship Mutual’s circular is attached and brief notes are mentioned in our table below. Club has decided to ask for 12.5% increase for P&I and FDD entries due to following developments.
P&I deductibles also to rise by 10% for those $100,000 or less.
• Claims from Covid have continued through this policy year (2021/22) but with lower severity; so the impact is less than in the previous year.
• Whilst the number of International Group (IG) Pool claims in 2021/22 is lower compared to the previous year, severity is significantly greater.
• The Club’s own retained claims for the year are higher than originally projected.
• The 2021/22 financial year combined ratio is again expected to be over 100%. The Board therefore decided that a 12.5% general increase should be applied to premium on all classes of business.
• Investment returns are lower than last year, but nevertheless currently projected to remain well in surplus at year end.
• The Club’s Standard & Poor’s (S&P) rating has been reaffirmed at A, but with a negative outlook which the agency attributes to exceptionally high levels of IG pool claims.
• Owned gross tonnage has increased by approximately 6.7% in the year to October.
As usual once the group reinsurance contract is renewed, the difference compared to the previous year (whether up or down) will be reflected on the members’ agreed renewal premium unless specified otherwise.
Below you can find our comparison table of Group Clubs.