OceanScore reviews the first year of EU ETS: what have we

Adapting to the EU Emissions Trading System (EU ETS)

The shipping industry is navigating a tough road under the EU Emissions Trading System (EU ETS), with major hurdles in compliance and efficiency. OceanScore, a maritime data company, has pointed out serious problems that need fixing before emissions liabilities are settled in 2025. These issues could slow down progress if left unaddressed, making it essential for the industry to act fast.

Gaps in Automation and System Readiness

One of the biggest challenges is the lack of automation and standard systems. Shipping companies are dealing with mismatched data formats and no common platform for sharing information. OceanScore warns that these problems are slowing down reporting and making compliance harder.

Without a standardized approach, it’s tough to meet EU ETS rules. Different voyage definitions and reporting methods confuse, especially for voyage charters, making it difficult to settle commercial agreements smoothly. There’s also an issue with some service providers overcharging for data, which creates extra costs and stress for shipping companies.

OceanScore analysis shows near-tripling of EU ETS costs due to Red Sea crisis

Transparency in Managing EU Allowances

Transparency is another major concern, especially when it comes to managing EU Allowances (EUAs). Right now, invoicing is complicated and takes too much time. Companies struggle to track payments and deliveries because there’s no single system to manage everything.

Traditional tools like Excel just aren’t enough anymore. Instead, companies are moving toward professional management tools like OceanScore’s ETS Manager. Already used by around 50 companies, this tool helps simplify the complex process of tracking emissions compliance and makes cost breakdowns clearer.

Hammonia Reederei, a customer of OceanScore, explains that handling ETS compliance across many owners and charterers can be difficult. However, OceanScore’s solution has made the process easier, proving that transparency is crucial for building trust among all parties involved.

Accountability and Compliance Issues

Accountability is a tough topic, especially for non-European shipowners. Many are reluctant to take responsibility for EU ETS compliance, and third-party managers often try to shift this burden onto shipowners. This creates confusion and slows down commercial operations.

Another challenge is the need for Maritime Operator Holding Accounts (MOHAs). Companies without these accounts face problems like being unable to buy EUAs when they need them. While fears about non-compliance spreading across fleets have been exaggerated, managing multiple accounts still adds a layer of complexity.

Fortunately, the steady EUA prices in 2024 have provided some relief, but long-term solutions are needed to manage these risks effectively.

The Road Ahead: Preparing for FuelEU

Looking forward, the industry must prepare for FuelEU, which will be introduced next year. OceanScore’s Managing Director, Albrecht Grell, warns that short-term fixes won’t be enough. The industry needs systematic solutions that can scale up and handle the growing complexity of emissions compliance.

The lessons from the first year of EU ETS show that transparency, efficiency, and collaboration are essential. To succeed, the shipping industry must develop better tools, improve communication, and work together. With the 2025 deadline fast approaching, the time for action is now.