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Drewry: First EU ETS shipping payment due 30 September

Drewry analyses the 2024 EU MRV data and attempts to answer some of the key questions arising including financial impact on shipping and how much would each vessel have to pay on average.

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RESIZED Chris Pagan

Around 13,000 vessels reported their 2024 data on the EU MRV platform in compliance with the MRV guidelines. The CO2 emitted by these vessels in 2024 must be paid for by surrendering 40% EU Allowances (EUAs) for each tonne of CO2. The first due date for the shipping industry to pay its dues is 30 September 2025.

In this article, independent maritime research and consulting services provider Drewry analyses the 2024 EU MRV data and attempts to answer some of the key questions arising:

How much CO2 was emitted under the scope in 2024?

Around 90 million tonnes of CO2 was emitted within the scope of the EU ETS, an increase of around 14% compared to the previous year.

This increase is partly due to geopolitical factors, which caused vessels to take the longer route via the Cape of Good Hope instead of the shorter route via the Suez Canal.

Figure 1: Total CO2 emissions under EU ETS scope

MRV Chart 11

Which sector emitted the most CO2 in the region?

Despite accounting for 16% of the vessels (21% in terms of dwt capacity), the container sector emitted an aggregate of around 34% of the CO2 emissions, according to the EU MRV data.

Figure 2: Fleet analysis vs emissions under EU ETS (% of total)

MRV Chart 2.11

What will be the financial impact on shipping?

Considering the current price of EUA (around EUR 70), an estimated USD 2.9 billion will be due by the responsible parties in October this year.

If emission levels remain similar, Drewry estimates the total cost to rise to around USD 7.5 billion when the phase-in period ends and all Greenhouse gases (GHGs) are included in the scope (in 2026).

How much would each vessel have to pay on average?

For trading in the EU in 2024, each RoPax and passenger vessel will pay an average of around USD 1 million towards EU ETS, while a container vessel would pay an average of around USD 0.5 million.

Figure 3: EU ETS cost per vessel (average)

MRV Chart 31

Mitigating the impact of EU ETS

Shipping companies calling ports in the EU are working towards decarbonising their vessels through various methods:

  • Retrofitting energy-saving technologies and propulsion-improvement devices to improve the efficiency of their fleet
  • Using sustainable biofuels
  • Introducing alternative-fuel vessels in the fleet
  • Retrofitting existing vessels to run on alternative fuels
  • Using advanced antifouling and low-friction paints

Container companies such as Maersk, CMA CGM and Hapag-Lloyd have responded to the EU Emissions Trading System (EU ETS) by introducing transparent surcharges to cover the cost of emission allowances. Alongside these surcharges, they offer specialised services that allow customers to choose shipping options powered by alternative fuels or green solutions (such as biofuels or green methanol), helping to significantly reduce their Scope 3 emissions. These services are typically marketed under brands like Maersk’s “ECO Delivery”, CMA CGM’s “ACT+” and Hapag-Lloyd’s “Ship Green”.

Marching towards net-zero

Geopolitics muted the positive impact of the EU ETS, compelling vessels to take longer voyages through the Cape of Good Hope. The regulation’s gradual phasing in will increase the cost burden on polluters and could encourage them to reduce carbon emissions in the region. 

It will be interesting to see how the FuelEU Maritime, which came into force in 2025, improves GHG emissions in the region, along with the expected IMO Net Zero Framework (NZF). The EU plans to review its regulations to align them with the latter after its likely adoption in October this year.

These regulations are intended to reshape the industry by:

  • Increasing the demand for alternative-fuel vessels
  • Replacing the shipping industry’s energy demand with renewable sources
  • Increasing the use of modern technologies to improve efficiency and harness renewable energy onboard

Conclusion

The increasing GHG regulations signal a decisive shift in global shipping practices, marking an end to the era of voluntary emission reductions and instead making polluters accountable. For shipowners and operators, the challenge is not only to meet these requirements but also to leverage them as catalysts for innovation, efficiency, and long-term competitiveness. With the transition to net zero already underway, ship operators that act early will position their vessels for sustained competitiveness and market longevity.

 

Photo credit: Chris Pagan on Unsplash/ EU MRV, Drewry
Published: 26 August, 2025

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Biofuel

BHP and GCMD trial multi-feedstock B100 bio bunker fuel on bulk carrier

Bio-blend in the BHP and GCMD pilot is being used on a BHP-chartered bulk carrier “Berge Lyngor”, which was bunkered in Singapore in early May.

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BHP and GCMD trial multi-feedstock B100 bio bunker fuel on bulk carrier

BHP and the Global Centre for Maritime Decarbonisation (GCMD) on Wednesday (3 June) said they have blended biofuels from two distinct feedstocks—used cooking oil and waste animal fats —and introduced the lower-emissions marine fuel into a BHP-chartered bulk carrier as part of a pilot project.

The bio-blend in the BHP and GCMD pilot is being used on a BHP-chartered bulk carrier Berge Lyngor, owned and operated by Berge Bulk, transporting BHP iron ore from Western Australia to China. When run on bio-blend, the vessel has the potential to reduce well-to-wake greenhouse gas emissions by approximately 79 per cent per voyage compared to sailing on very low sulphur fuel oil (VLSFO).

The vessel bunkered in Singapore in early May with a B100 bio-blend comprising 50 percent tallow-derived biodiesel, sourced and supplied by HAMR Energy, and 50 per cent used cooking oil (UCOME) supplied by Mitsui & Co Energy Trading Singapore (METS).

Mitsui also blended the fuel and Dan-Bunkering coordinated and executed the bunkering operation, which was performed by Global Energy’s barge MT Maple.

The BHP and GCMD pilot will assess how biofuels from multiple feedstocks can be blended, handled, and introduced under real-world operating conditions using existing used cooking oil bunkering infrastructure.

At the same time, insights from this pilot will help identify solutions to challenges related to fuel quality, handling, traceability, and onboard vessel performance.

Biofuels for global shipping today rely heavily on used cooking oil – a feedstock whose availability is approaching its projected limits. Biofuel from waste animal fats presents a promising option to expand the supply of lower-emissions marine fuels.

The outcomes of the pilot are expected to shed light on the practical steps to integrate biofuel blends from different feedstocks into existing supply chains. The diversity of biofuels will provide shipowners and operators with greater flexibility to optimise fuel procurement based on cost, availability, and lifecycle emissions performance.

Biofuels derived from different feedstocks can exhibit varying properties that may impact operations, including potential corrosion from oxidation, fuel system clogging caused by wax formation, which this pilot aims to assess.

The pilot will trace and verify the biofuel blend’s integrity aimed at bolstering confidence in emissions reductions reporting. The pilot will also provide insights into how robust tracing can support future marine fuel supply chains where biofuels from multiple feedstocks with varying lifecycle greenhouse gas emissions footprints are blended together.

This project is co-funded by the Maritime and Port Authority of Singapore under the Maritime Innovation and Technology Fund (MINT).

 

Photo credit: Global Centre for Maritime Decarbonisation
Published: 3 June, 2026

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Biofuel

NYK starts one-year B100 bio bunker fuel trial on car carrier

In this trial, NYK will operate a car carrier continuously on B100 for one year to evaluate the impact on engines, fuel supply systems, and operational practices.

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NYK starts one-year B100 bio bunker fuel trial on car carrier

Japanese shipping firm NYK on Tuesday (2 June) said it has commenced a one-year long-term trial involving the continuous use of 100% biofuel (B100) on an NYK-operated car carrier. 

In this trial, NYK will operate a car carrier continuously on B100 for one year to evaluate the impact on engines, fuel supply systems, and operational practices. High-purity biofuels such as B100 are known to be susceptible to degradation from oxygen, light, and heat, raising concerns about the stability of such fuels during long-term use.

In this trial, the biofuel primarily comprises FAME (Fatty Acid Methyl Ester) derived from used cooking oil and similar feedstocks.

The initiative is designed to evaluate the fuel’s effects on the vessel’s equipment and verify operational safety under real-world conditions. 

Through this effort, NYK seeks to accumulate technical expertise that will support the broader use of high-purity biofuels and further accelerate efforts to reduce greenhouse gas (GHG) emissions.

NYK has been advancing the use of biofuels through various initiatives. In 2024, the company conducted a trial using biofuel blend B24 and subsequently expanded practical usage to B30. However, the company said there remains limited global experience with the long-term continuous use of B100.

“By collecting long-term operational data through this trial, NYK aims to accumulate valuable technical insights to support both the safe operation of vessels and the wider adoption of high-purity biofuels,” it said. 

 

Photo credit: NYK
Published: 3 June, 2026

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Ammonia

AM Green plans to build green ammonia plant at Indian port

Initiative also includes development of green ammonia handling, storage and bunkering infrastructure, pilot bunkering operations, safety procedures and training programmes, says VOC Port Authority.

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VO Chidambaranar (VOC) Port Authority on Friday (29 May) said it has signed a Memorandum of Understanding (MoU) with India’s ammonia producer AM Green Ammonia to collaborate in the development of a green ammonia production plant.

The plant will have a capacity of one million tonnes per annum (MTPA) at Tuticorin.

The initiative also includes development of green ammonia handling, storage and bunkering infrastructure, pilot bunkering operations, safety procedures and training programmes. 

The project is expected to support the development of green fuel corridors connecting VOC Port with major ports in Europe and Asia, thereby strengthening India’s position in the global green fuels value chain.

VOC Port also signed a Memorandum of Understanding (MoU) with Bureau Veritas (India) Pvt. Ltd., to collaborate on Green Port certification, emissions accounting, ESG reporting, safety validation, development of green bunkering practices, and establishment of a Centre of Excellence for green fuels and sustainability.

The port also plans for an upcoming 750 m³ green methanol bunkering facility.

 

Photo credit: Naveed Ahmed on Unsplash
Published: 3 June, 2026

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