EU ETS and FuelEU Maritime Compliance Services for the Shipping Industry

Navigating EU Emissions Regulations with Synergy Marine Group

With the European Union Emissions Trading System (the EU ETS) applying to most tonnage since 1 January 2024, the maritime industry has entered a new era of emissions compliance. As part of the EU “Fit for 55” climate strategy, all vessels at or above 5,000 Gross Registered Tonnage (GRT) calling at EU ports—regardless of their flag state—must monitor and report carbon dioxide (CO₂) emissions and surrender EU Allowances (EUAs) accordingly.

The subsequent introduction of FuelEU Maritime, effective from 1 January 2025, further strengthened the EU’s decarbonisation efforts by regulating the carbon intensity of fuels used in European waters. Together, these regulations impose significant compliance challenges, but they also offer opportunities for cost optimisation, energy efficiency and fleet-wide emissions reduction strategies.

At Synergy Marine Group, in collaboration with Azolla, our dedicated decarbonisation arm, we provide comprehensive solutions to help shipowners and operators stay compliant while enhancing operational efficiency, reducing costs and accelerating the transition to net-zero shipping.

Understanding the EU ETS

The EU ETS is a cap-and-trade system, where shipping companies must purchase and surrender EUAs for their verified CO₂ emissions. From 2026, methane (CH₄) and nitrous oxide (N₂O) will also be included, requiring shipowners to further enhance their Monitoring, Reporting and Verification capabilities.

EU ETS Applicability and Scope

The EU ETS applies to all vessels at or over 5,000 GRT calling at EU ports, and to:

100% of emissions from voyages solely within the EU;
50% of emissions from voyages to/from an EU port from/to one outside the EU; and
100% of port emissions at EU berths

Compliance Timeline

FuelEU Maritime: Complementing the EU ETS for Decarbonisation

While the EU ETS addresses carbon pricing, FuelEU Maritime (effective in full from 1 January 2025) focuses on reducing the carbon intensity of marine fuels. Ship operators must ensure that their fleets meet year-on-year emissions reduction targets, progressively tightening from 2% in 2025 to 80% by 2050.

Thus the compliance targets are a 2% reduction in the GHG intensity of fuels by the end of 2025, a 6% reduction by the end of 2030 and an 80% reduction by the end of 2050.

Energy Efficiency Mandates:

These include:

Adoption of alternative fuels such as biofuels, e-methanol, LNG, ammonia and hydrogen;
Deployment of energy-saving technologies including wind-assisted propulsion, battery hybridisation and air lubrication systems.
Penalties for non-compliance are financial and are linked to CO₂ equivalent emissions over the allowable threshold.

CASPER: AI-driven Decarbonisation and Compliance

To support shipowners in seamlessly complying with the EU ETS and FuelEU Maritime, Azolla has developed CASPER, which is Carbon Accounting Software for Periodic Emissions Reporting, a comprehensive AI-driven digital sustainability platform for emissions reduction. CASPER enables real-time monitoring, optimised compliance strategies, and intelligent decision-making in order to lower emissions and operational costs.

How CASPER helps with EU ETS and FuelEU Maritime

Automated Monitoring, Reporting and Verification for CO₂ CH₄ and N₂O emissions;
Real-time compliance tracking to prevent penalties and optimise EUA allowances;
Advanced fuel analytics for FuelEU Maritime-approved fuels and decarbonisation pathways;
AI-powered fleet optimisation for emissions reduction and regulatory forecasting.

By integrating CASPER into their compliance strategy, shipowners can reduce compliance costs, improve sustainability performance and ensure operational efficiency in the midst of continually evolving EU regulations.

EU ETS and FuelEU Maritime Compliance via Synergy Marine Group and Azolla

Through Azolla, Synergy Marine Group integrates cutting-edge decarbonisation strategies, AI-powered data analytics and smart fuel transition solutions in order to help shipowners comply with EU ETS and FuelEU Maritime regulations efficiently and cost-effectively.

Our services include:

1. Comprehensive Emissions Audits and Strategy Development

Fleet-wide assessment of CO₂ CH₄ and N₂O emissions;
Tailored emissions reduction strategies to minimise EUA expenses;
Integration of FuelEU Maritime-compliant fuel usage plans.

2. Automated Emissions Monitoring and Reporting

Real-time CO₂ emissions tracking using the CASPER digital platform;
Automated Monitoring, Reporting and Verification, ensuring regulatory compliance;
Data integration for annual EU ETS reporting.

3. Carbon Trading and Allowance Optimisation

Strategic procurement of EUAs at competitive pricing;
Carbon offset advisory and trading support to manage compliance costs;
FuelEU Maritime credits guidance for low-carbon fuel adoption.

4. Regulatory Advisory and Compliance Training

Market intelligence updates on EU ETS and FuelEU Maritime regulatory changes;

Crew and shore staff training on emissions management best practices;

Advice on future IMO decarbonisation regulations and upcoming EU policies.

Contact us at marketing@synergygroup.sg for a tailored EU ETS and FuelEU Maritime compliance plan, or to learn more about how we can assist with EU ETS and FuelEU Maritime compliance.