EU ETS and shipping: A greener future at what cost?

Global shipping giants call for climate action 🌍 Nearly 200 shipping companies have come together to support a worldwide greenhouse gas levy, aiming to accelerate the maritime industry’s transition to cleaner fuels. The proposal, brought to the IMO, marks a major shift in industry alignment around carbon pricing. While the EU and Pacific nations back the plan, the United States opposes it, citing concerns about global taxation. 🔗 Read more at https://lnkd.in/dynYYUAB

Compliance in motion—marine emissions rules are tightening. AUS40Marine keeps you ahead. The global shipping industry is accelerating its shift toward decarbonization: The IMO is set to introduce its first-ever global carbon pricing scheme, with a $100 per tonne levy on CO₂ emissions above target levels, slated to begin in 2027 or 2028. Revenue will fund the industry’s transition toward cleaner fuels.  AP News Financial Times Meanwhile, in a bold diplomatic move, the United States has urged nations to reject a UN-backed marine fuel emissions deal—or face tariffs, visa restrictions, or port levies—putting the agreement’s October IMO vote under pressure.  Reuters In this rapidly evolving landscape, sticking with AUS40Marine means staying compliant without the headache: AUS40Marine delivers ISO-grade AUS 40—tailored for marine SCR systems—so compliance is built-in, whether regulations tighten or shift. Our fleet assets and port infrastructure across U.S. seaports ensure timely deliveries, even amid uncertainty around global policy outcomes. Every transfer comes with a Certificate of Analysis, so your SCR system stays clean, compliant, and ready—no matter what regulations are next. With AUS40Marine, you get stability in your supply chain, even when policy waves get rough.

Getting to Zero Coalition has called on IMO Member States to adopt the Net-Zero Framework (NZF) at next month’s meeting, warning that failure to do so could have far-reaching consequences for the shipping industry and global trade. Global Maritime Forum https://lnkd.in/gWFXSW3K #IMO #Shipping #Net-Zero

EU ETS Maritime Milestone: Shipping Industry Faces First Carbon Allowance Payment by 30 September 2025. #Shipping #EUETS #Maritime #CarbonPricing #EmissionsTrading #Decarbonisation #ClimateAction #GreenShipping #SupplyChain #Sustainability

Geopolitics muted the positive impact of the EU ETS, compelling vessels to take longer voyages through the Cape of Good Hope. The regulation's gradual phasing in will increase the cost burden on polluters and could encourage them to reduce carbon emissions in the region.   It will be interesting to see how the FuelEU Maritime, which came into force in 2025, improves GHG emissions in the region, along with the expected IMO Net Zero Framework (NZF). The EU plans to review its regulations to align them with the latter after its likely adoption in October this year. - Archit Tewari and Captain Hemant Gupta FNI https://lnkd.in/eVMwQZAT

The Chinese government this week published a statement by its highest organs of authority spelling out plans to tighten its carbon trading market with emissions caps starting in 2027 and a “total quota control” by 2030. Five noteworthy aviation sustainability developments curated by Ishka Sustainability Lead and Senior Analyst Eduardo Mariz Cortiñas ➜https://shorturl.at/bdi81 #aviationfinance #aircraft #esg #sustainableaviation #decarbonisation #saf #aviation #netzero #carbon #emissions

In today’s State of the Union address, the President of the European Commission, Ursula von der Leyen, underlined two key priorities for the #competitiveness of European shipping: simplification and open trade 🚢 #Open_Trade: “Trade allows us to strengthen our supply chains” Open trade underpins Europe’s competitiveness. We strongly support the swift conclusion of trade agreements and oppose protectionist measures. With 35% of the global fleet under EU ownership, European shipping is an international leader in global supply chains, enabling trade and connecting Europe with the rest of the world. #Simplification: “Cut bureaucratic costs for European companies” Reducing the reporting burden by at least 25% for all companies and at least 35% for SMEs, which are the backbone of the European shipping industry, is crucial. Sustainability reporting criteria must be fit for purpose for shipping, which also complies with international regulations. #What_do_we_need_more? #Level_playing_field: Adopt the IMO Net-Zero framework and ensure full harmonisation of the EU legislation with the IMO agreement as shipping requires one regulatory framework at international level. #Certainty: As the IMO Net-Zero framework is an opportunity for European energy producers to build a clean fuel supply chain in Europe, introducing a mandate on fuel suppliers to produce clean fuels and tech for shipping will help build a clean fuel supply chain in the EU. #SOTEU #EuropeanShipowners

Nearly 200 shipping companies said September 15 they want the world’s largest maritime nations to adopt regulations that include the first-ever global fee on greenhouse gases to reduce their sector’s emissions. #GHG #sustainability #supplychain #shipping #logistics https://lnkd.in/gviRFn8w

It's London International Shipping Week 2025, an ideal opportunity to highlight the complexity of EU ETS compliance in shipping. Clear allocation of emissions responsibility between owners, operators, and charterers is essential to avoid penalties and delays. 👉Read our latest blog and gain clarity on emissions liability in the ETS: https://lnkd.in/eRCajSZU #LISW2025 #Shipping #EUETS #Decarbonisation #CarbonMarkets

Regulations reshaping shipping: IMO Net-Zero, FuelEU Maritime and EU ETS The global maritime industry is navigating new waters as three regulatory currents converge—IMO's Net-Zero Framework, EU's FuelEU Maritime, and the expansion of EU ETS to shipping. I recently watched the excellent webinar “Sailing Toward Sustainability: Maritime Transport in the Clean Industrial Deal” (see sources in comment) and did some follow-on research to connect the dots for the EU maritime sector. TLDR: We now have three regulations side-by-side that apply to the emissions of maritime transport, for EU large vessels, all pushing for decarbonizations in their own ways.  Here's a summary of how these three frameworks are set up: ⚓ IMO Net-Zero: Global Approach - First binding global framework (approved MEPC 83, April 2025) - Sets GHG Fuel Intensity (GFI) standards with well-to-wake calculation - Economic mechanism: underperformers buy remedial units; overperformers earn rewards - Funds global Net-Zero initiatives 🏛️ FuelEU Maritime: EU's Mandate - Enforced since Jan 1, 2025 (Fit for 55) - Mandates GHG intensity reduction: 2% by 2025, up to 80% by 2050 - Uses well-to-wake emissions accounting - Penalizes excess emissions at €2400/tonne CO₂e 💰 EU ETS: Carbon Pricing market - Phased in from 2024: 40% payable in 2025, 100% by 2027 - Covers CO₂, then CH₄ & N₂O from 2026 - Applies to 100% of EU voyages and 50% of inbound/outbound 🌊The combined picture Having three distinct regulations applied to the EU shipping sector looks a bit overwhelming. It’s worth noting that the cost of emission in these systems work differently: - IMO penalizes greenhouse gas fuel intensity (GFI) → i.e. "how dirty your fuel is" - ETS penalizes total emissions → You have to buy ETS allowance based on how much you emit → i.e. "how much you emit" - FuelEU Maritime also penalizes fuel GHG intensity So far it seems to me like polluters will have to pay the cost of all three regulations for their excess emissions (got confirmation about this? Please share), which means . In combination we will hopefully see a significant push for the industry to transition to greener fuels, although it will take time.