🌍 EU-ETS and Shipping: What Maritime Companies Must Know About Emissions Trading in 2024

Davide Ramponi
10. Juli
5 Min. Lesezeit

My name is Davide Ramponi, I am 20 years old and currently training as a shipping agent in Hamburg. On my blog, I take you with me on my journey into the exciting world of shipping. I share my knowledge, my experiences and my progress on the way to becoming an expert in the field of Sale and Purchase – the trade with ships.

Cargo ship near EU map with CO2, ETS, and Euro icons, illustrating EU ETS maritime compliance and carbon cost regulation in shipping.

Today’s post covers one of the most talked-about regulatory developments in European shipping: the inclusion of maritime transport in the EU Emissions Trading System (EU-ETS). Long applied to land-based industries like aviation, energy, and manufacturing, the ETS has now extended its reach into our waters—and the implications are enormous.

But what exactly does it mean for shipowners, charterers, and operators? How are emissions calculated, who pays, and how can you prepare? In this article, I’ll break down the basics, the business impact, and the strategies that can help you stay compliant—and competitive. 👇

🧾 What Is the EU-ETS—and What’s Changing in Shipping?

The EU Emissions Trading System (EU-ETS) is a “cap-and-trade” scheme designed to reduce greenhouse gas emissions by putting a price on carbon. It works by setting a cap on total emissions and allowing companies to buy or trade allowances (EUAs) for every tonne of CO₂ they emit.

🚢 In 2024, shipping is now officially part of this system.

As of 1 January 2024, the EU has begun phasing in maritime transport under the ETS rules. This includes CO₂ emissions from ships entering, exiting, or operating between EU ports.

📌 Key milestones:

2024: Covers 40% of verified emissions
2025: Increases to 70%
2026 onward: Full 100% coverage applies

💡 Takeaway: For the first time, maritime operators must pay for their carbon emissions within the EU zone.

🚢 Which Ships Are Affected—and What’s the Operational Scope?

The EU-ETS doesn’t apply to every vessel—but it still covers a significant portion of the global fleet.

✅ Who’s included?

All ships ≥5,000 GT engaged in commercial activities (cargo and passenger)
Vessels trading within the EU/EEA, or between the EU and non-EU ports

❌ Who’s currently excluded?

Fishing vessels
Warships
Non-commercial vessels (e.g., yachts under private use)
Ships under 5,000 GT (for now)

🌍 Operational coverage:

100% of emissions on intra-EU voyages
50% of emissions on voyages between an EU port and a non-EU port
100% of emissions at berth in EU ports

🧠 Insight: Even non-EU flagged vessels must comply if they call at an EU port. The regulation is port-entry driven, not flag-based.

📏 How Are Maritime Emissions Measured and Traded?

Now for the practical question: how do we track emissions, and what does “trading” actually involve?

1. 🧮 Emissions Calculation

Operators must monitor and report CO₂ emissions via the existing EU MRV (Monitoring, Reporting, Verification) system, which has been in place since 2018.

🔍 Key parameters:

Fuel type and consumption
Distance sailed
Time at sea
Cargo carried and DWT

2. 📊 Allowances and Trading

For every tonne of CO₂ emitted, a shipping company must purchase and surrender one EU Allowance (EUA).

💶 EUAs are:

Traded on carbon markets (e.g., EEX, ICE)
Priced dynamically—€85–€100 per tonne in early 2024
Required to be surrendered by 30 September of the following year

📌 Important: The shipowner or DOC holder (Document of Compliance) is legally responsible for EUA compliance—but charterers often foot the bill through contractual adjustments.

💸 What Are the Cost Implications for Owners and Charterers?

Let’s do the math:

A Panamax bulk carrier burning ~25 tonnes of fuel per day on a 10-day voyage from Santos to Rotterdam may emit ~80 tonnes of CO₂.

🎯 At €90 per tonne, that’s €7,200 per voyage just in EUAs—for 50% of emissions under the 2024 scope.

👉 Intra-EU voyages (e.g., Hamburg to Valencia)? Double the exposure.

Who pays?

🔹 Shipowners (DOC holders): Legally accountable🔹 Charterers: Often bear cost under carbon clause agreements

⚖️ Best practice: Clearly allocate responsibility in charter parties using BIMCO’s ETS Clause for Time Charter Parties 2022.

🛠️ Strategies for Reducing Emissions—and Compliance Costs

Avoiding carbon costs means reducing emissions. Here's how companies are managing their footprint while staying profitable:

1. ⚙️ Voyage Optimization

Use weather routing, just-in-time arrival, and trim optimization to reduce fuel burn and lower emissions.

🔧 Software tools:

StormGeo Route Analyst
NAPA Voyage Optimization
ZeroNorth Emissions AI

2. 🧭 Slow Steaming

Lower speeds = lower fuel consumption. Even a 10% speed reduction can cut emissions by 15–20%.

📉 Trade-off: Longer voyages, but potentially lower total voyage costs when carbon is priced in.

3. ⚡ Engine and Hull Upgrades

Install energy-saving devices (ESDs) or switch to low-carbon fuels like LNG, biofuels, or methanol.

🔋 Hybrid propulsion and battery-assisted systems are gaining ground in short-sea shipping.

4. 📄 Contractual Clarity

Ensure ETS-related costs are clearly defined in time charter and voyage charter agreements.

📎 Recommended clauses:

BIMCO ETS Clause 2022
Rider clauses for carbon sharing and EUA cost caps

💬 Tip: Avoid disputes—align expectations between owners and charterers before the voyage.

5. 🧠 Crew and Office Training

Compliance depends on daily decisions by engineers, officers, and operators. Make sure they understand:

MRV reporting
CII and EU ETS overlaps
Fuel efficiency practices

📘 Training modules now offered by DNV, ABS, and Lloyd’s Register.

📚 Real-World Example: Managing EU ETS Exposure

Case: A midsize container shipping company (15 vessels)

Concerned about upcoming EUA costs, the company:

Hired a dedicated carbon compliance officer
Integrated MRV + CII + ETS data into a central dashboard
Negotiated revised TCE (Time Charter Equivalent) rates with charterers
Used routing software to avoid weather-related delays

🎯 Results after 6 months:

12% reduction in average emissions per voyage
Improved CII scores
Charterer satisfaction and zero ETS-related disputes

💡 Lesson: Proactive management is the best defense against rising carbon costs.

🧭 Conclusion: EU ETS Is Here—Adapt, Don’t React

The inclusion of shipping in the EU Emissions Trading System marks a turning point for maritime regulation. Emissions are now not just an environmental concern—but a financial line item.

✅ Ships ≥5,000 GT trading in or with the EU must pay for carbon emissions

✅ Emissions are tracked via MRV and offset through purchased EUAs

✅ Costs can reach thousands of euros per voyage—but can be reduced through operational efficiency

✅ Owners and charterers must agree on carbon cost allocation and prepare contracts accordingly

✅ Digital tools, crew training, and real-time tracking are essential to staying ahead

📣 How is your fleet preparing for EU ETS compliance? Have you already traded your first EUAs or signed a carbon clause?