The European Union’s Emissions Trading System (EU ETS) will include maritime shipping in its carbon market beginning in 2024, placing a limit on the carbon emissions of ships above 5,000 gross tonnage that operate within the EU. The EU ETS will require shipping firms that exceed those limits to either purchase carbon credits in the EU ETS market or face penalties. Although the new requirements are expected to have a small impact on global trade, industry analysts expect operational costs for shippers to increase and shippers to respond by modernizing their fleets and/or rerouting their ships to lessen their exposure to the EU ETS system. This EBOT is the second in a series that examines the market impacts of a new wave of global maritime decarbonization initiatives.