THE DEVELOPMENT OF THE INCLUSION OF THE SHIPPING INDUSTRY IN EMISSION TRADING SYSTEMS AND ITS IMPACT ON THE SHIPPING SECTOR

With the growing global demand to address climate change, emission trading systems have gradually become a core tool for reducing greenhouse gas emissions in various regions. Shipping is an essential part of global trade, and several regions are either already including or planning to include the sector in their emission trading systems. Given the varying levels of development of ETS across different regions, the management approaches for incorporating shipping into these systems differ significantly. The incorporation of shipping will have widespread implications for shipowners, international cargo owners, ship operators, and the shipbuilding industry. As the shipping sector takes on the responsibility of transporting international goods, its integration into ETS will drive significant changes across various industries. These changes include increased compliance costs, new regulatory requirements, and a shift toward cleaner technologies and fuels. The paper discusses the impacts of these changes, focusing on how shipping's inclusion in ETS is reshaping the sector globally and driving its transition towards sustainability.