A legislative amendment to the EU Emissions Trading Directive came into force on 5 June 2023, bringing the maritime sector under the coverage of the EU’s Emissions Trading Scheme (ETS). This amendment aims to reduce greenhouse gas emissions and aligns with the International Maritime Organisation’s commitment to ensure net-zero in GHG emissions by 2050. The new regulation caps maritime transport emissions and creates a price signal that incentivizes improvements in energy efficiency and low-carbon solutions.
The amendment affects shipping companies with ships equal to or exceeding a gross tonnage of 5,000, requiring them to purchase and surrender ETS emission allowances for each tonne of reported CO2 emissions they produce. The new regulations also require extensive emissions-reporting processes and the need for automation and analysis far beyond the average spreadsheet. Implementing an effective reporting, forecasting, and risk management system is crucial for businesses to adapt to the new regulations.
To adapt to the new regulations, businesses in the maritime sector need to install rigorous emissions-reporting processes and implement automation and analysis beyond the average spreadsheet. Tailored technology is key to developing a proper hedging strategy based on estimated yearly consumption, free allocation, and additional purchasing or selling needs. Businesses also need to carefully consider the choice of fuel and may need dedicated processes, tools, and automation to manage renewable fuel sourcing. Businesses that invest in a functional carbon strategy, supported by modern technology, will stand apart from the rest and ensure compliance while forging new avenues for profit and opportunity.
