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Dry docking in Ships

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.

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.

Digitalisation and EU ETS Compliance 2024

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.

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.

EU ETS mechanism for regulating carbon emissions

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.  Please contact us at  marketing@synergygroup.sg, and let us set a course for an ever greener, always compliant and sustainable and profitable future.

Frequently Asked Questions

What is the EU ETS and what is its primary objective? +

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.

How does the EU ETS extend its coverage to shipping? +

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.

When does the implementation of emissions payments for shipping companies begin under the EU ETS? +

Emissions payments under the EU ETS for shipping companies began on 1 January 2024, with increasing obligations over subsequent years.

What are the specific requirements for monitoring and reporting under the EU ETS applicable to shipping companies? +

Shipping companies must have approved monitoring plans and submit annual emissions reports for each ship, ensuring precise tracking and reporting.

How do companies purchase and surrender EU Allowances (EUAs) within the EU ETS? +

Companies can purchase and surrender EUAs through trading and future planning, following specific guidelines.

Who are the authorities in charge in different EU/EEA Member States under the EU ETS, and how are they selected? +

Each EU/EEA Member State has designated authorities for administering the EU ETS, with outlined roles and selection processes.

What happens if companies don't comply with the EU ETS, and how are penalties handled? +

Non-compliance with the EU ETS leads to penalties, with details on compliance deadlines, penalty handling and allowance settlement procedures.

Are there any specific exemptions from EU ETS for shipping? +

Certain exemptions exist to the EU ETS for shipping, covering various vessel types and voyages.

How will the revenues generated from the EU ETS be utilised? +

Revenues from the EU ETS are utilised for shipping decarbonisation and other climate initiatives.

What are the latest updates within the scope of the EU ETS? +

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.