The Cost of Carbon Compliance Leads the Discussion at the ABS Hellenic National Committee

ABS, the prominent classification society in Greece, provided key insights on pressing topics such as FuelEU, the impact of geopolitical challenges on global trade, and the carbon value chain. These discussions took place with Greek shipowners, ship managers, and charterers at the annual ABS Hellenic National Committee Meeting.

The meeting facilitated open conversations addressing real challenges and viable solutions to achieve the 2050 decarbonization targets.

“We need different approaches to decarbonization beyond the CII rating perspective. FuelEU involves market-based measures considering well-to-wake emissions, not just what’s on a vessel. The focus now is on applying sustainability practices fleet-wide, not just to individual ships, to maximize incentives and reduce compliance costs,” stated Christopher J. Wiernicki, ABS Chairman and CEO.

Wiernicki elaborated on the FuelEU program, presenting analyses of various alternative fuels and technologies, including wind-assisted propulsion, and their impact on daily compliance costs over time. He also discussed the potential of fleet pooling within FuelEU, illustrating scenarios where pooling, such as one LNG vessel with five light fuel oil assets, could lower carbon intensity measurements.

“With our deep technical expertise and client-centric approach, ABS is well-positioned at the intersection of safety, technology, and regulation,” he added.

Special guest Bob Sommerville, former ABS Chairman, also attended the committee meeting.

John McDonald, ABS President and COO, provided an update on global shipyard operations, noting that shipyards are near capacity, with Chinese yards looking to increase availability and provide more slots for new builds.

The agenda also covered the current geopolitical landscape and its impact on shipping, with ABS offering insights into the challenges posed by supply chain disruptions.

Vassilios Kroustallis, ABS Senior Vice President, Global Business Development, presented a market outlook. He highlighted that new vessel orders show an increasing readiness for dual-fuel capabilities compared to conventional fuels, with most new builds designed to be LNG-ready, followed by methanol and ammonia.

“Sharing knowledge and collaborating on solutions are crucial for the shipping industry at this juncture. ABS remains a steadfast partner, providing valuable insights as we navigate new regulations while maintaining safe and viable operations,” said Peter Livanos, Chairman of GasLog Ltd. and the ABS Hellenic National Committee Chairman.