Driving efficiency and trust: DNV’s Emissions Connect in the new EU ETS landscape

The EU’s Emissions Trading System (ETS) has significantly impacted shipping, affecting financial operations and daily management. Frontline, a leading tanker company, uses DNV’s Emissions Connect to navigate these changes. With the expansion of the EU ETS in January 2024, accurate emissions data has become crucial. DNV’s platform ensures reliable emissions verification, helping companies manage costs.

Digitalization in maritime decarbonization

Pål Lande from DNV highlights the rising importance of emissions data due to new regulations like the EU’s Monitoring, Reporting, and Verification (MRV) system. The EU ETS, requiring carbon credit management, marks a significant shift.

Frontline’s digital transformation

Lars Pedersen, CTO at Frontline, explains their digital journey with DNV, starting with ESG reporting and evolving to meet EU MRV and IMO regulations. This prepared them for the smooth transition to the EU ETS.

Daily emissions reporting

With the EU ETS, shipowners must now manage emissions data daily. Accurate data management influences compliance, certification, and financial accounting. It also impacts commercial transactions, where emissions costs must be clearly defined.

Importance of verification

Frontline, operating a large tanker fleet, relies on accurate, verified data for commercial settlements. DNV’s Emissions Connect, launched in April 2023, provides real-time emissions data verification, supporting regulatory compliance and integrating data into company operations.

Challenges and future regulations

Frontline has implemented robust data checks, with DNV’s system ensuring accuracy. The partnership between Frontline and DNV has enhanced emissions reporting. Future regulations, like FuelEU Maritime and potential IMO carbon pricing, will further emphasize the need for reliable data in the maritime industry.