EmissionLink calls for fairer shipping treatment under expanded EU carbon market

Brussels, Belgium. EmissionLink managing director Philippos Ioulianou has called for fairer treatment of shipping under the proposed expansion of the EU Emissions Trading System, warning of double charging and seeking more revenue for maritime decarbonisation.

Proposed expansion

Under European Commission proposals, the EU ETS would cover offshore activities from 2027 and later extend to certain vessels between 400 and 5,000 gross tonnes from 2029.

Ioulianou said the wider scope could support Europe’s climate objectives, but that expansion alone would not make the system more effective. He said it must be coherent, proportionate and able to deliver practical decarbonisation.

Concerns over overlapping carbon charges

Shipping companies could face overlapping liabilities if the EU system eventually operates alongside a carbon-pricing mechanism introduced by the International Maritime Organisation.

Ioulianou said shipping should not pay twice for the same tonne of emissions. He called for an automatic and transparent process to recognise payments and reconcile liabilities if the EU ETS operates alongside a future IMO mechanism.

Offshore and smaller operators

The inclusion of offshore activities is expected to create further complications, as vessels can remain at worksites for extended periods and responsibility for operations, fuel consumption and emissions may be divided among owners, charterers, contractors and project developers.

Responsibilities for emissions monitoring, allowance purchases and carbon-price exposure will increasingly need to be clearly defined in charterparties and project agreements.

Smaller operators joining the system from 2029 may face disproportionate compliance demands, as many do not have the specialist teams, established data systems or carbon-market experience available to larger shipping companies.

Reporting and investment

EmissionLink welcomed proposals to align EU Monitoring, Reporting and Verification requirements more closely with FuelEU Maritime reporting and supported measures aimed at preventing companies from avoiding obligations through transhipment.

The company said carbon pricing alone would not be sufficient and should be accompanied by investment to help the industry reduce emissions in practice.