Green Passports & Eco Notations 🌱⚓️ Boosting Ship Value Through Sustainability

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

Today’s topic sits at the intersection of two major forces shaping our industry: sustainability and asset value. 🌍💰

We’ll dive into the growing world of sustainability certifications for ships—specifically Green Passports and Eco Notations. What are they? Why do they matter? And how can they boost your vessel’s reputation, regulatory compliance, and resale value?

If you're involved in buying, selling, operating, or managing vessels, understanding these certifications is quickly becoming essential. Let’s set sail! 🚢

What Are Green Passports and Eco Notations? 📝♻️

In a sector increasingly driven by environmental expectations, certifications are emerging as a new type of “currency.” They don’t just prove compliance—they send a clear market signal: This ship is ready for the future.

Let’s break down the two most common types:

✅ Green Passport (Inventory of Hazardous Materials - IHM)

A Green Passport (also called IHM) is a document that lists all hazardous materials onboard a vessel.

• Required under the EU Ship Recycling Regulation and IMO Hong Kong Convention

• Tracks substances like asbestos, heavy metals, ozone-depleting compounds, etc.

• Must be updated throughout the ship's life and checked at sale or scrapping

💡 In short: It’s your ship’s “chemical résumé.”

✅ Eco Notation

Eco Notations are awarded by classification societies (like DNV, Lloyd’s Register, ABS) to ships that exceed regulatory environmental performance.

Examples include:

• DNV “Clean” or “Green” notations

• ABS ENVIRO+

• Lloyd’s “ECO” class

They typically recognize:

🌊 Reduced emissions (NOx, SOx, CO₂)

🔋 Efficient fuel consumption

⚙️ Advanced ballast water treatment

🧼 Clean hull coatings

Why Do These Certifications Matter? 🌍📈

Sustainability certifications offer more than just regulatory checkboxes. They offer real strategic advantages:

📊 1. Market Differentiation

• Eco-certified ships stand out in charter markets

• Preferred by environmentally conscious charterers and cargo owners

• Enhanced credibility with financiers and insurers

🌟 A ship with a “green badge” signals responsibility and quality.

💸 2. Resale Value Boost

• Certified vessels typically enjoy better resale potential

• Buyers see lower environmental risk = lower cost of compliance down the road

• Green Passports are often a requirement in S&P transactions for EU-flagged ships

🛡 3. Regulatory Risk Reduction

• Prepares vessels for stricter future standards

• Reduces likelihood of port detentions or scrapping disputes

• Meets growing investor and ESG reporting pressures

🤝 4. Partner and Charter Preference

• Some oil majors and big charterers only accept certified vessels

• Increasingly required in “green corridors” and emission control zones

How to Obtain a Sustainability Certification 🔍🛠

Getting your ship certified isn’t overly complicated—but it does require planning, transparency, and collaboration with qualified experts.

🧾 For Green Passports (IHM):

1. Engage an Approved HazMat Expert

   • Certified companies conduct onboard surveys and sampling

2. Develop IHM Part I

   • Identifies hazardous materials in structure, equipment, systems

3. Class Society Approval

   • DNV, ABS, or others verify and certify the IHM

4. Keep Updated Throughout Vessel Life

   • Every repair, replacement, or upgrade must be documented

⚠️ EU-flagged ships and those visiting EU ports must carry IHM since 2021.

🟢 For Eco Notations:

1. Initial Gap Assessment

   • Evaluate current equipment, emissions, and systems

2. Implement Upgrades (if needed)

   • Examples: Low-sulphur fuel systems, solar-assisted tech, hybrid propulsion

3. Verification by Class Society

   • Performance tests, data submissions, onboard inspections

4. Ongoing Compliance

   • Regular reviews or re-certification based on class rules

💬 Hint: Start by contacting your classification society—they offer roadmaps and requirements tailored to each notation.

Real-World Case Studies 🌍🚢

Let’s look at how some vessel owners have used sustainability certifications to their advantage:

📘 Case 1: Chemical Tanker Fleet – Eco Notation by DNV

A Scandinavian shipping company upgraded 12 chemical tankers with:

• Exhaust gas scrubbers

• Hybrid-ready engines

• Digital fuel optimization systems

💡 Result:

All vessels received DNV's “Clean” notation →They won long-term charter contracts with two multinational chemical companies focused on ESG targets.

📘 Case 2: Green Passport in a Secondhand Sale

A German S&P broker facilitated the sale of a 2008-built containership to a Greek buyer.The seller had proactively implemented and maintained a Green Passport (IHM) since 2017.

💰 Result:

✅ Sale closed 3 weeks faster

✅ No delay in due diligence

✅ €150,000 price premium compared to similar non-IHM vessels

📘 Case 3: Eco Notation as Marketing Edge

A Japanese owner of a 10,000 TEU container vessel retrofitted an energy management system and received a Lloyd’s ECO notation.

💼 Result:

The ship was featured in the charterer's ESG annual report and became a flagship in their low-carbon logistics network.

Market Value & Resale Impact 💰📈

From a Sale and Purchase perspective, sustainability is increasingly factored into vessel valuation. Here’s how:

Certification Status	Market Effect
✅ IHM / Green Passport	Easier cross-border sales, faster due diligence
✅ Eco Notation	Higher charter appeal, better resale margin
❌ None	Potential delays, inspection failures, discount risk

🔍 Brokers now include IHM status in sales listings. Some banks require it for green shipping loans.

Final Thoughts 🌊🔍

Green Passports and Eco Notations are no longer “nice to have”—they are strategic assets. As environmental standards tighten and market expectations rise, vessels with sustainability certifications enjoy real advantages in:

✅ Reputation

✅ Regulation

✅ Revenue

Whether you're building a new ship or trading in the secondhand market, integrating these certifications into your planning can make the difference between average performance and outstanding market positioning.

Conclusion: Future-Proofing Through Certification 🚢🌱

The maritime world is changing fast—and those who prepare will lead.

Key Takeaways 🎯

✅ Green Passports (IHM) ensure compliance and smoother vessel sales

✅ Eco Notations reflect superior environmental performance

✅ Certified vessels attract better charter terms, buyers, and finance options

✅ Class societies and HazMat experts are your go-to partners for certification

✅ Sustainable ships are not only better for the planet—they’re better for business

👇 Have you worked with sustainability certifications on your vessels?

Do you think Green Passports and Eco Notations will soon become industry standard?

💬 Share your thoughts in the comments — I look forward to the exchange!

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