Brief: The EU ETS (EU cap-and-trade carbon pricing) requires shipowners to hold and surrender EU Allowances (EUAs) against verified CO₂ emissions. In parallel, FuelEU Maritime (from 2025) sets progressive GHG intensity limits for marine fuels used by vessels >5,000 GT in EU/EEA ports.
Milestone: from September 30, 2025
The first practical EU ETS deadline for shipping starts today: companies must surrender 40% of EUAs for their verified 2024 emissions. This ushers in a phase where compliance, traceability and financial planning become critical.
EU ETS quick primer
- Cap: EU sets a total emissions ceiling for regulated sectors.
- Allowances (EUAs): each equals 1 tCO₂.
- Trade: surrender allowances for emissions; buy/sell depending on shortfall/surplus.
- Annual decline: the cap is reduced year-on-year to drive low-carbon investment.
Scope in shipping
- Vessels: > 5,000 GT calling at, departing from, or operating within EU/EEA ports.
- Emissions covered: 100% of intra-EU voyages; 50% of voyages to/from non-EU ports.
- FuelEU Maritime (from 2025): progressive GHG intensity targets (−2% vs 2020, ramping to mid-century goals).
Non-compliance risks
- Fines and financial exposure from allowance shortfalls.
- Reputational damage and potential operational restrictions in EU ports.
- Contractual friction over ETS/FuelEU cost allocation.
Recommended actions
- Ensure EUA surrender via the Union Registry.
- Confirm integrity of 2024 verification (accredited verifier).
- Prepare contingency for shortfalls (secondary market procurement, contractual levers).
- Reassess FuelEU strategy (e.g., pooling, low-carbon fuels, surplus management).
FuelEU pointers for 2025+
- Flexibilities: banking, borrowing and pooling—useful but constrained; model the compliance balance impact.
- Fuel certification: use Proof of Sustainability (PoS) or Proof of Compliance (PoC) where applicable; ensure traceability.
- Reporting: robust digital records and auditability.
- Exemptions: certain routes/ports (outermost regions, small islands) may have temporary specific treatment.
Looking ahead
Sound data governance, EUA procurement planning and the gradual adoption of alternative fuels will separate minimum-cost compliance from penalties. Maritime Nexus can assist with rapid compliance reviews, surrender planning and a FuelEU roadmap.