The container ship Maersk Murcia sits moored to a terminal in the port of Gothenburg, a busy shipping centre on the west coast of Sweden, as cargo is loaded onto it by crane before it sets sail on August 24, 2020.
JONATHAN NACKSTRAND | AFP | Getty Images
LONDON — The European Union is due to propose an unprecedented overhaul to its carbon market this week, seeking to put a price on shipping emissions for the first time.
And the region’s shipowners are deeply concerned.
The European Commission, the EU’s executive arm, is set to present its green fuel law for EU shipping on Wednesday. It is part of a broader package of reforms designed to meet the bloc’s updated climate targets.
To be sure, the EU has committed to reducing net carbon emissions by 55% (when compared to 1990 levels) through to 2030, becoming climate neutral by 2050. The EU says this will require a 90% reduction in transport emissions over the next three decades.
Lars Robert Pedersen, deputy secretary general of BIMCO, the world’s largest international shipping association, says it is no secret the industry has concerns about the EU’s plans.
You’re not going to change the fleet on a dime. In the near to medium term any imposition of a carbon price would essentially be a tax.
Roman Kramarchuk
Head of future energy analytics at S&P Global Platts
“There is a strange misbelief in Europe that these kinds of actions put pressure” on other regions to do the same, Pedersen told CNBC via telephone. “I think, frankly, it has the opposite effect.”
He argued the proposal was “not conducive” to international policy, would fail to reduce regional carbon emissions and ultimately take money out of the shipping industry when it could otherwise be spent on reducing emissions in the fleet.
“It is taxation. Does that help anything when it comes to decarbonization? I don’t think so. It looks more like it is an effort to collect money — and so be it,” Pedersen continued. “Europe decides what Europe decides and there’s not so much you can do about that, I guess, other than highlight that it might not be the most appropriate way to reduce emissions.”
His comments come shortly after Transport & Environment, a European non-profit, purportedly obtained a leaked proposal for a draft of the first-ever law requiring ships to progressively pivot to sustainable marine fuels.
A liquid natural gas (LNG) storage silo at the LNG terminal, operated by LNG Croatia LLC, in Krk, Croatia, on Monday, Jan. 25, 2021.
Petar Santini | Bloomberg | Getty Images
A spokesperson for the commission declined to comment on the draft proposal. The EU has said action to address EU international emissions from navigation and aviation is “urgently needed” and initiatives to address these areas will be designed to boost the production and uptake of sustainable aviation and maritime fuels.
Pedersen said it was important not to panic over the leaked draft, noting that it could still be revised in the coming days and there are many more hurdles to overcome before the measures become EU policy.
EU member states and the European Parliament would first need to negotiate the final reforms, a process that analysts estimate could take roughly two years.
“To be frank with you, I haven’t even bothered to read it because I think it is a waste of time at this point. We have a date when the final proposal will be presented, and we will read that very carefully,” Pedersen said.
Soren Toft, chief executive of the Mediterranean Shipping Company, the world’s second-largest container carrier, has also criticized the EU’s proposal. Speaking to The Financial Times last month, Toft warned the proposals would have the opposite effect of their intentions in the absence of readily available low-carbon fuels.
What’s more, it is not just the shipping industry that has voiced opposition to the EU’s plans.
Transport & Environment described the leaked draft of the commission’s proposal as “an environmental disaster,” arguing the policy does not incentivize investment in low-carbon fuels such as renewable hydrogen and ammonia. Instead, it argues the proposal promotes liquefied natural gas and “dubious” biofuels as an alternative to marine fuel oil.
“It’s not too late to save the world’s first green shipping fuel mandate,” said Delphine Gozillon, shipping policy officer at Transport & Environment. “The current draft pits e-fuels against much cheaper polluting fuels, giving them no chance at all to compete on price. The EU should revise the draft to include an e-fuels mandate and make them more cost-attractive through super credits.”
Europe’s ETS is the bloc’s main tool for reducing greenhouse gas emissions that cause climate change. It forces heavy emitting businesses, from aviation to mining, to buy carbon permits in order to create a financial incentive for firms to pollute less.
One issue currently afflicting the scheme, however, is so-called “carbon leakage,” where businesses transfer production (and emissions) elsewhere due to the relative cost of polluting in Europe.
The EU is expected to address this problem, potentially implementing what’s known as the carbon border adjustment mechanism from 2023. The policy is an attempt to level the playing field on carbon emissions by applying domestic carbon pricing to imports.
How will the EU’s proposal impact carbon prices?
“How shipping is brought into a pricing regime is critical,” Roman Kramarchuk, head of future energy analytics at S&P Global Platts, told CNBC via email.
“But the July proposal will be far from a done deal,” he continued. “It’s worth remembering that the EU had to temper its ambitions around aviation previously in response to push-back from trade partners — though the upshot of that was a more globally inclusive approach from the UN through the CORSIA program.”
The Carbon Offsetting and Reduction Scheme for International Aviation initiative refers to a United Nations deal designed to help the aviation industry reach its “aspirational goal” of making all growth in international flights “carbon neutral” from 2020 onwards.
Kramarchuk said it was important to note that the proposed policies were not expected to constitute an outright ban on specific fuels, adding S&P Global Platts sees increasing shares of the shipping fleet being powered by LNG, methanol or ammonia through to 2030.
Electricity pylons are seen in front of the cooling towers of the coal-fired power station of German energy giant RWE in Weisweiler, western Germany, on January 26, 2021.
INA FASSBENDER | AFP | Getty Images
The impact that the EU’s proposal has on carbon prices will also be “crucial,” Kramarchuk said, predicting an end-of-year target for the EU’s benchmark carbon price at 60 euros per metric ton.
Higher carbon prices would likely raise questions about the competitive decisions shipping firms take around fuel choice and in turn depend on how carbon emissions in fuels are accounted for, Kramarchuk said.
“But you’re not going to change the fleet on a dime. In the near to medium term any imposition of a carbon price would essentially be a tax.”
For a while it seemed like a bit of a hail mary, as many thought that most of the industry was already committed to the SAE CCS standard for fast charging.
For a time, though, VW was a holdout. It wasn’t until December 2023 – half a year after Ford’s announcement – that VW committed to switching to NACS in 2025 (though really, they were just waiting for SAE’s certification of the standard, which was completed a few days prior).
Well, now we’re here in 2025, and VW says they’re ready to step up.
Today at CES, VW PR director Mark Gillies confirmed to PC Magazine that “we get access to the network in June/July, when we have an official VW adapter.”
Currently, VW isn’t even listed on Tesla’s NACS page, which mentions that Ford, Rivian, GM, Volvo, Polestar, and Nissan vehicles can all charge on Tesla’s charging network. The only manufacturer currently listed as “coming soon” is Mercedes-Benz, and generally manufacturers have spent a few months on that page before gaining access.
So this is a bit of a surprise announcement from VW, but certainly welcome. Then again, we have witnessed miscommunications in this respect before, so maybe Tesla just didn’t want to jump the gun again, like it did with Nissan. (Update: It turns out VW jumped the gun this time, as a previous version of this article quoted VW saying it will get access in March, not June).
VW’s confirmation today doesn’t specify whether its sub-brands, Audi and Porsche, would be on the same timeline. But since the three brands committed to NACS in a joint announcement, it stands to reason that they could be on the same timeline to get access and adapters.
Update: A previous version of this article stated that VW cars will get access in March, and adapters in June. It turns out, both access and adapters will come in June.
Electrek’s Take
Given that VW was one of the last manufacturers to officially adopt NACS, it’s nice to see them keeping to their timeline – and possibly beating some other manufacturers to the punch too.
This could also be a sign that we’ll start seeing more of a flood of manufacturers getting access soon. The transition is supposed to happen “throughout 2025” after all, and, well, that’s where we are. But the casual nature with which VW has confirmed this timeline suggests that perhaps this transition is really about to get on a roll.
So, look forward to having a lot more interesting sights to see at Superchargers, as the menagerie gets more varied throughout the year.
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US EV sales will continue to grow in the year ahead, accounting for 1 in 4 vehicles sold in 2025, according to Cox Automotive’s 2025 Outlook.
Cox Automotive is kicking off 2025 with a bright outlook for the auto market. After wrapping up 2024 on a high note, the US auto industry seems to be on a solid path forward, despite some uncertainties. In fact, Cox is predicting that it’s going to be the best year for the auto market since before the pandemic, in 2019.
With the exception of Stellantis and Tesla, nearly every automaker posted higher sales year-over-year overall in 2024. General Motors was the top-selling automaker in 2024, while Honda and Mazda delivered strong growth.
The US market posted record EV sales in 2023 and 2024, and this trend is expected to continue in 2025. Cox Automotive predicts that EVs will account for approximately 10% of the market total in the year ahead, up from roughly 7.5% in 2024.
Hybrids and plug-ins will account for about 15% of the market, and sales of ICE vehicles will tumble to 75% of total volume, the lowest level on record.
EV growth will be supported by around 15 additional EV models entering the market, consumers deciding to buy before the Trump administration cuts the $7,500 tax credit, and state-level incentives countering potential federal cuts. The rapid expansion of the EV charging network is also contributing to this growth.
Cox asserts that “consumers are feeling better about the road ahead, as the US election was smoothly settled, interest rates are below their peaks, and the job market has stabilized.”
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With more models hitting the market and massive incentives, electric vehicles are more affordable than ever. However, with Trump’s transition team reportedly planning to end the EV tax credit, the savings may soon disappear. Here are the EVs you can still lease for under $300 a month in January.
2024 was another record year for EV sales in the US. Many automakers, including GM, Ford, Hyundai, Kia, and Honda, sold significantly more electric cars last year than in 2023.
According to Cox Automotive, electric vehicles are expected to represent 7.5% of all US auto sales in 2024. Although all December and full-year 2024 sales numbers have yet to be released, EV sales hit a record in November. With over 116,000 units sold, electric cars achieved an 8.5% market share.
A big reason behind the growth was new models, like the Honda Prologue, which was the third best-selling EV in the US in November. That’s after deliveries began in just March.
Honda sold over 33,000 Prologues in the US last year, with nearly 7,900 in December alone. With over 114,000 EVs sold, GM outpaced Ford’s roughly 97,900. Meanwhile, Hyundai, Kia, and others reported record EV sales in 2024.
Although a big reason behind the sales surge is due to new options, massive incentives have made EVs even cheaper to lease than gas-powered cars.
What EVs are for lease for under $300 in January 2025?
With additional discounts on top of the $7,500 federal EV tax credit, some discounts are reaching as high as $10,000 to $20,000 off MSRP. In Q3, EV incentives averaged over 12% of the average transaction price (ATP), nearly double the industry average of 7%.
Despite having a starting MSRP almost double that of a Civic Sedan, you can lease a Honda Prologue for less in many parts of the US.
The 2024 Honda Prologue is listed at just $229 for 36 months in California and other ZEV states. With $1,299 due at signing, the effective monthly payment is $265. That’s for the EX (FWD) trim, which has a range of up to 296 miles.
In other parts of the country, don’t worry — Honda is still offering Prologue leases starting at $249 per month. You can also opt for a 0% APR.
Lease From
Term (months)
Due at Signing
Effective rate per month (including upfront fees)
2025 Kia Niro EV
$149
24
$3,999
$315
2024 Kia EV6
$159
24
$3,849
$319
2024 Hyundai IONIQ 5
$189
24
$3,999
$355
2024 Hyundai IONIQ 6
$159
24
$3,999
$326
2024 Fiat 500e
$211
42
$211
$216
2024 Toyota bZ4X
$219
39
$2,999
$296
2024 Honda Prologue
$229
36
$1,299
$265
2024 Subaru Solterra
$279
36
$279
$287
Tesla Model 3
$299
36
$2,999
$382
Tesla Model Y
$299
36
$2,999
$382
2024 Chevrolet Equinox EV
$299
24
$3,169
$431
Best EV lease deals for under $300 a month in January 2025
Using data from auto intelligence firm CarsDirect, we’ve gathered the top EVs you lease for under $300 a month this January. You can view offers in your area at the bottom.
Several other electric crossovers and SUVs, including the 2024 Subaru Solterra, Toyota bZ4X, and Hyundai IONIQ 5, are available to lease for under $300.
The 2024 Hyundai IONIQ 5 is listed as low as $189 for 24 months. With $3,999 due at signing, the effective rate is $355. Hyundai is offering big savings to clear inventory with the upgraded 2025 models arriving at US dealerships.
Hyundai’s other dedicated EV, the IONIQ 6, is listed at just $159 for 36 months. With $3,999 due at signing, the monthly effective rate is $326.
Subaru is offering 2024 Solterra leases starting at $279 per month (36 months). With just the first month’s payment due up front ($279), the monthly rate is $296. Although Toyota’s bZ4X is listed for as little as $219 for 39 months, with $2,999 due at signing, it’s slightly more with an effective rate of $296.
Tesla’s Model Y and Model 3 can be leased for just $299 per month (36 months). With $2,999 due at signing for an effective rate of $382.
The 2024 Chevy Equinox EV can be leased for as little as $299 for 24 months. With $3,169 due upfront, the monthly rate is $431.
Meanwhile, a November report by Reuters claimed that Trump’s transition team aimed to eliminate the $7,500 federal tax credit. If true, many of these savings could soon disappear.
Are you ready to find your new EV? We’ve got you covered. You can use our links below to find the best deals on popular electric vehicles in your area.
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