> ## Documentation Index
> Fetch the complete documentation index at: https://docs.appliedaifoundation.org/llms.txt
> Use this file to discover all available pages before exploring further.
# EU ETS
> How the EU Emissions Trading System applies to shipping, and how the platform tracks coverage and cost.
## What it is
EU ETS (Emissions Trading System) puts a price on carbon. From 2024 it covers maritime CO₂ on voyages touching EU/EEA ports. Each tonne of covered CO₂ requires the surrender of one EUA (EU Allowance), purchased at market rate.
## Who it applies to
Cargo and passenger ships **5,000 GT and above** calling at EU/EEA ports — under Directive 2003/87/EC as amended by Directive (EU) 2023/959.
## Two factors determine your bill
### 1. Voyage coverage by leg type
Each voyage leg is classified by its endpoints:
| Leg type | Departure | Arrival | Coverage |
| --------------- | ----------- | ----------- | -------- |
| **INTRA\_EU** | EU/EEA port | EU/EEA port | 100% |
| **INTO\_EU** | Non-EU port | EU/EEA port | 50% |
| **OUT\_OF\_EU** | EU/EEA port | Non-EU port | 50% |
| **NON\_EU** | Non-EU port | Non-EU port | 0% |
Time spent **at port** is also classified per-record: emissions at an EU port are 100% covered; emissions at a non-EU port are 0% covered — even within the same voyage.
### 2. Phase-in factor by year
Maritime ETS is phased in over three years:
| Year | Phase-in |
| ------------ | -------- |
| 2024 | 40% |
| 2025 | 70% |
| 2026 onwards | 100% |
So your final ETS exposure is:
```
ETS Emissions = Σ (Leg CO₂ × Coverage Factor) × Phase-In Factor
ETS Cost = ETS Emissions × EUA Price
```
The default EUA price is configurable via the `DEFAULT_EUA_PRICE` environment variable (defaults to €75/tonne).
## What the platform calculates
For every voyage, the platform:
1. Walks the consumption log chronologically
2. Detects each **BOSP** (Beginning of Sea Passage) event as a leg boundary
3. Splits each record into sea CO₂ vs. port CO₂ vs. EU-port CO₂ vs. non-EU-port CO₂
4. Applies the leg's coverage factor to sea CO₂; applies 100% / 0% per-record to port CO₂
5. Sums covered CO₂ across all legs and multiplies by the year's phase-in factor
This per-leg approach is more accurate than treating the whole voyage as one classification — a Rotterdam → Hamburg → Le Havre → Singapore voyage produces three intra-EU legs (100%) and one out-of-EU leg (50%), not one blended figure.
## What you see in the product
* **Fleet view**: Phase-in banner highlighting the current year, voyage-type breakdown, and total cost projection
* **Vessel view**: Expandable voyages table showing each leg's coverage factor and covered CO₂
* **Reports**: Downloadable EU ETS report for verifier submission
## Reference
### Primary regulations
* [Directive 2003/87/EC (consolidated)](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02003L0087-20240101) — EU ETS directive including maritime provisions
* [Directive (EU) 2023/959](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32023L0959) — Amendment that brought maritime into EU ETS
* [Regulation (EU) 2015/757 (consolidated)](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02015R0757-20240101) — EU MRV (the data feed for ETS)
### Industry guides
* [DNV — EU ETS Maritime](https://www.dnv.com/maritime/insights/topics/eu-emissions-trading-system-ets/)
* [CE Delft — FuelEU Maritime and EU ETS Report](https://cedelft.eu/publications/eu-ets-and-fueleu-maritime/)
* [Sustainable Ships — EU ETS Maritime Guide](https://www.sustainableships.org/eu-ets-maritime/)
### Carbon market data
* [ICAP ETS Map](https://icapcarbonaction.com/en/ets) — global ETS overview
* [Ember Carbon Price Tracker](https://ember-climate.org/data/data-tools/carbon-price-viewer/) — live EUA price
### In this documentation
* [Methodology: EU ETS coverage formulas](/methodology/eu-ets-coverage)