EU ETS
1 January 2024 introduced a major change for shipping.
The mandatory European Union Emissions Trading Scheme combats regulated GreenHouse Gases by requiring power, industrial and aircraft interests to obtain and relinquish emissions allowances. Known as EUAs, these represent quantities of GHGs emitted annually, and can be bought and sold in a “cap and trade” marketplace.
Impact of the 2024 EU ETS Regulations on the Shipping Industry
From 1 January 2024 the EU ETS applies to CO2 emissions from all vessels of 5,000 GRT and above that enter EU ports, whatever their Flag State. There is grading if loadport and disport are both in the EU or one is outside, and for shipping the scheme will apply to methane and nitrous oxide only from 2026.
This brings about the challenge of compliance, with extra requirements and the need for strategic carbon management, but also the opportunity to help with decarbonisation by trading on the world’s first and most extensive carbon market.
Ensuring EU ETS Compliance with Synergy Marine Group
The Synergy Marine Group can read these maybe unfamiliar tides and navigate among what might be uncharted reefs. It can be your EU ETS compass – accurate, advanced and assured.
Alongside proven and frontier success with EEXI and CII, Synergy’s services include:
- audit and consultation – appraising your carbon footprint and tailoring reduction strategy;
- monitoring and reporting via seamless and optimal data collection that ensures constant compliance;
- leveraging opportunities in carbon and emissions trading and offsetting;
- regular and frequent market and regulatory updates
The Synergy Marine Group blends world class ship management with leading digitalisation and innovative decarbonisation, and can bring about operational enhancement and cost saving as part of complete compliance.
Our experienced team understands the complexities of the EU ETS and its implications for shipowners and other stakeholders, and offers comprehensive and cost-effective solutions.
Contact us for tailored EU ETS Compliance solutions
Please contact us at marketing@synergygroup.sg, and let us chart a course for an ever greener, always compliant and sustainable and profitable future.
Frequently Asked Questions
The EU ETS is designed as a “cap-and-trade” system, focusing on reducing greenhouse gas emissions cost-effectively. It is a central tool in the EU’s climate change policy.
The system is set to cover shipping CO2 emissions, including 100% of emissions on intra-EU voyages and 50% for voyages between the EU and non-EU countries. It applies to cargo and passenger ships over a certain gross tonnage.
Emissions payments under the EU ETS for shipping companies began on 1 January 2024, with increasing obligations over subsequent years.
Shipping companies must have approved monitoring plans and submit annual emissions reports for each ship, ensuring precise tracking and reporting.
Companies can purchase and surrender EUAs through trading and future planning, following specific guidelines.
Each EU/EEA Member State has designated authorities for administering the EU ETS, with outlined roles and selection processes.
Non-compliance with the EU ETS leads to penalties, with details on compliance deadlines, penalty handling and allowance settlement procedures.
Certain exemptions exist to the EU ETS for shipping, covering various vessel types and voyages.
Revenues from the EU ETS are utilised for shipping decarbonisation and other climate initiatives.
The EU ETS is set to undergo key expansions and changes, including tighter emissions caps and the inclusion of more greenhouse gases. These updates aim to bolster the EU’s climate action efforts, affecting a wide range of industries by driving the adoption of greener technologies and practices.
