Since January 1, 2024, shipping companies have been under the expanded European Emissions Trading Scheme (EU ETS), marking a significant step in the European Union’s efforts to reduce emissions across industries. For the maritime sector, the compliance journey has begun, with companies now tasked to monitor their emissions, manage trading accounts, and implement more efficient strategies for fuel use and route planning. With the first major reporting deadline looming in March 2025, it’s crucial that shipping companies understand their obligations under both the EU ETS and the FuelEU Maritime Regulation (FEMREG).
At VURDHAAN, we recognize the importance of staying ahead of these complex regulatory requirements. Our expertise in maritime sustainability, especially in areas such as EU MRV, MARPOL, and the Clean Shipping Index, allows us to offer tailored solutions to help your business navigate these changes smoothly. As a sustainability consultancy, we are already actively supporting maritime organizations in achieving compliance while maintaining operational efficiency.
Key Deadlines and Requirements
The first compliance deadline for EU ETS is set for September 30, 2025, when shipping companies are required to surrender their allowances. Despite the significant timeframe, challenges have already arisen. For example, only 940 Maritime Operator Holding Accounts (MOHAs) have been opened, due to delays and difficulties within member state registries. The complexity of the maritime sector and the partial implementation of the EU ETS Directive (2023/959) further complicates this process.
Similarly, the FuelEU Maritime Regulation (FEMREG) presents its own unique challenges. Shipping companies were required to submit their FuelEU Monitoring Plans by August 31, 2024. Although the European Commission has provided a template to assist with submissions, many industry players are still seeking detailed guidance on the scope and mechanics of these regulations.
At VURDHAAN, we are well-versed in the nuances of the FuelEU Maritime Regulation and have been working alongside shipping companies to ensure timely compliance. Our specialized services include helping companies prepare robust monitoring plans and integrating sustainable fuel options like BioMethane and BioLNG into their operations.
Understanding Exemptions and Compliance Strategies
The available exemptions under EU ETS and FEMREG are not straightforward. They are divided into categories related to vessel size, voyage type, and maritime activity, each with its own intricacies. For instance, exemptions related to “small islands” or “Outermost Regions” can be difficult to interpret.
To assist the industry, tools like compliance checklists and exemptions tables are being developed. These resources, which highlight critical compliance deadlines and exemptions, allow companies to create more effective and tailored sustainability strategies. VURDHAAN also offers comprehensive support through our three-step methodology: Support, Educate, and Implement. We help organizations assess their eligibility for exemptions, develop compliance plans, and optimize their ESG ratings.
Positive Steps Towards Maritime Sustainability
Despite the regulatory complexities, these changes mark a positive shift towards decarbonizing the maritime sector. By adopting more efficient fuel and route strategies and embracing sustainable technologies, the industry can significantly reduce its environmental footprint.
At VURDHAAN, we are committed to helping maritime organizations turn compliance into a competitive advantage. Through our sustainability services, we provide the tools and expertise to not only meet regulatory requirements but also to thrive in a greener, more sustainable future.