Owners face significant emission bills under EU-ETS without proper management
(Posted on 28/06/24)
The integration of the shipping sector into the European Union Emissions Trading System (EU-ETS) marks a pivotal step towards a more sustainable and decarbonised maritime industry. However, this new regulation brings substantial costs and compliance challenges for ship owners. Oceanly, a leading provider of fleet performance solutions, warns that without proper management, ship owners could face considerable financial liabilities.
As from 1st January, 2024, ship owners are required to purchase emission allowances for the CO2 their vessels emit. With the current EU Allowance (EUA) price hovering around €70 per tonne, the financial impact can be substantial, particularly as the EU-ETS phases in over the next three years. Initially, ships must cover 40% of their emissions liabilities, but this escalates in subsequent years.
Validation of voyage emissions data and the allocation of EU-ETS costs are critical hurdles for ship owners as failure to accurately monitor, report, and verify emissions could result in substantial bills.
Matteo Barsotti, Operations Manager of Oceanly, stated: “The integration of shipping into the EU-ETS represents a major milestone in our industry's sustainability journey. However, ship owners could find themselves facing enormous emission bills if they do not proactively manage their emissions under the EU-ETS. These costs can escalate quickly so effective emissions management is essential not only for compliance but also for mitigating financial risks.”
To address these challenges, Oceanly offers its innovative Oceanly Performance solution, designed to streamline emissions management and compliance so owners can stay ahead of the regulatory curve while optimizing their operations.
Oceanly Performance reduces administrative burdens by automating the collection of essential data, such as fuel consumption and voyage information.
Its advanced monitoring capabilities provide real-time insights into carbon emissions, enabling timely operational adjustments to enhance fuel efficiency and reduce emissions.
Other features include:
Comprehensive Reporting: The platform generates detailed reports that comply with EU-ETS requirements, ensuring accurate and transparent emission reporting for regulatory submission.
Regulatory Updates: Oceanly Performance stays current with evolving EU-ETS regulations, ensuring ongoing compliance for shipping companies.
Expert Support: Oceanly's team of industry experts offers comprehensive support, including technical assistance, training, and consulting services to guide companies through the compliance process.
Mr Barsotti added: “Oceanly Performance empowers ship owners to manage their emissions effectively, ensuring compliance and promoting energy efficiency. Our solution not only helps reduce emissions but also drives significant fuel savings of between 3% and 11% per vessel.”
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