Webinar: EU ETS and its pitfalls

EU ETS and its pitfalls - Recap

An insightful webinar focused on the European Union Emissions Trading System (EU ETS). As Europe's primary tool for reducing industrial greenhouse gas emissions, the EU ETS has been at the forefront of international carbon market discussions. During the sessions, industry experts delved deeper into this subject.

Below you can watch the sessions and download the presentation from the speakers.

If you have any questions regarding EU ETS, EUA or MRV, please do not hesitate to reach out to one of our experts in the New Fuels Team or your local Fuel Supplier. You will find the New Fuels Team at the bottom of this page.

Managing Compliance Risk - Under the EU ETS

- Timeline & Obligations

- EUA Price Development

- Compliance Year 2024-2030

- Consequences of non-compliance

Download presentation (GRM)

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Navigating the EU’s Decarbonization of Shipping

- Industry Challenges - Managing a period of transition

- EU ETS regulations - Applying the ‘Polluter Pays’ principle

- Contract Management

- Common platform needed for Emission Data exchange

- EU ETS – from annual MRV reporting to managing emissions performance

- Emissions Connect - Fleet, Vessel and Voyage monitoring and verification.

Download Presentation (DNV)

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Q&A session highlights

Throughout the presentations, participants had the opportunity to ask questions in the Q&A. Many used this possibility to ask questions during both sessions. This footage is from the second session, where some of the questions were repeated from the first session.

In the following section, you can browse through all the questions that were raised during both sessions.

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Q&As from the webinar

A vessel going from Georgia (Black Sea) to West Africa, is it considered under EU ETS if the vessel take bunker at a EU port?

Bunkering is not considered as a port call.

What was the name of the document that Christian spoke about, regarding the registry information for companies?

The Registry Guidance. Your contact at Dan-Bunkering will find it for you.

How will a voyage from UK to EU be calculated? Presumably at 50 pct to EU (EUA), but will UK collect the other 50 pct under their UK ETS scheme?

Good question. Brexit did complicate things a bit.

Meanwhile, for now UK is considered a non-EU country and thereby count 50%. For now the national UK ETS scheme only applies to domestic shipping.

If the location is less than 300 nautical miles away, I believe it will still count as EU. (E.g Gibraltar)?

Only if the port has more of 65% of activities in the container segment.

Should one consider looking into alterntive fuels in order to minimize the ETS costs?

It should definitely be considered! Of course the business case depends on trade, type of vessel, vessel age and not least price difference between fossil and alternative fuels. But as Lars Nyfløt briefely mentioned ETS is not the only EU regulation around the corner. FuelEU Maritime will from 2025 require you to lower the GHG intensity in the your fuel. Biofuel for instance is a "plug 'n play" solution for compliance.

We are a ship owning entity and I expect one of our ships to call EU ports – What should be plan of action now in registering for EUA? Would it be possible to state step by step process?

We assume you're based outside the EU. - In the case of a shipping company registered in an EU Member State, it will be the EU Member State in which the shipping company is registered; - In the case of a shipping company that is not registered in an EU Member State, it will be the EU Member State with the greatest estimated number of port calls from voyages performed by that shipping company in the last four monitoring years; -In the case of a shipping company that is not registered in an EU Member State and that did not carry out any voyage falling within the scope of the EU ETS Directive in the preceding four monitoring years, the administering authority will be the EU Member State where a ship of the shipping company has arrived or started its first voyage falling within the scope of the EU ETS Directive. The concrete action also depends on whether you as owner also is the technical management or if that is delegated to a third party (ship manager).

How a non-EU DOC holder can open a Trading account in EU? what are detail requirements?

The process for opening trading accounts takes place online and is open to non-EU citizens, subject to conditions spelled out by each EU Member State (through their National Administrator). Users must first open an account in the Union Registry to be able to trade EU allowances.

As Christian mentioned each Member State have individual requirements. So, in short it needs to be checked with the administrating authority in the Member State in question.

Is this only fuel consumption for vessel passing through EU? Does it also apply to international company that is passing by EU? or consumption for EU registered company sailing globally?

The ETS regulation is flag neutral meaning that it applies to all vessels regardless of the flag they fly. Meanwhile the geographic scope is as follows: 100% of all voyages intra EU and 50% of in and outbound voyages to third countries.

What if I discharge 90% of my cargo outside of EU (within 300nm of EU) then remaining 10% inside EU. What amount is applicable?

It has nothing to do with how much cargo you transport, load or discharge. If you discharge in a port in a non-EU country that fulfills the requirements (300 NM and at least 65 % of container activity) then it will not count as a port call.

If we do an STS in EU waters but OPL a port, are we liable?

As of now STS operations are exempted ie. it will not count as a port call and thereby not be covered by ETS. The EU Commission will monitor this and its case in turns that this is used as a loophole ´resulting in major evasion, then the regulation is likely to be changed.