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Argus Media publishes FAQ on EU ETS inclusion of marine shipping

With the EU including GHG emissions from marine shipping in its ETS starting 1 January 2024, Argus Media releases a FAQ to prepare ship owners and charterers before the new regulation kicks in.

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Argus Media recently published a frequently asked questions document on the EU including GHG emissions from marine shipping in its Emissions Trading System (ETS). It also addresses if shipowners have to pay for CO2 allowances for emissions from bio bunker fuels starting in 2024:

The EU will include greenhouse gas (GHG) emissions from marine shipping in its Emissions Trading System (ETS) starting on 1 January 2024. From 2024, ship owners and charterers travelling in, out and within EU territorial waters will pay for 40pc of their GHG emissions by buying GHG credits sold on the ETS. In 2025, the emissions limit will increase to 70pc. The cap jumps to 100pc in 2026.

EU ETS applies to what types of vessels?

  • From 2024: cargo and passenger ships 5,000 gross tonnes (GT) or larger
  • From 2027: offshore ships 5,000 GT or larger

By 2026 the European Commission will review whether general cargo and offshore ships from 400-5,000 GT will also be included in the ETS.

What type of GHG emissions does EU ETS include?

The regulation includes carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O) emissions. CH4 and N2O emissions are calculated as CO2-equivalents (CO2e) using a Global Warming Potential of 100 years (GWP100), where one tonne (t) of CH4 equals 28t CO2e and 1t of N2O equals 265t CO2e. EU ETS will apply to

  • CO2 emissions from 2024
  • CH4 and N2O emissions from 2026

What is the geographical scope of the new regulation?

EU ETS accounts 100pc of emissions that occur when ships are within EU and European Economic Area (EEA) waters. EEA includes Iceland and Norway (which are not members of EU). EU ETS also accounts for 50pc of emissions from voyages starting or ending outside of the EU and EEA. Separately, container ships stopping in transshipment ports outside the EU and EEA but less than 300 nautical miles from an EU and EEA port, must include 50pc of the emissions for the voyage to/from the transshipment port as well.

Will companies have to surrender allowances for emissions from biofuels?

Currently, emissions resulting from the combustion of sustainable biomass compliant with the sustainability criteria established by Annex IX part A of the EU’s Renewable Energy Directive (RED) have an emission factor of zero under the ETS.

How does EU ETS work?

One EU ETS allowance (EUA) gives the ship operator the right to emit 1t of CO2e. These are the same GHG allowances already used by EU industry, power sector and aircraft operators. Vessel operators are not allowed to generate more greenhouse gas emissions than their allowances can cover. For instance, if a company emits 10,000t of CO2 during a reporting year, that company needs to buy and surrender 10,000 allowances by 30 September of the following year.

EUAs are auctioned. They can be purchased in the primary market through auctions on the European Energy Exchange (EEX). There is also a secondary market in which allowances can be sold bilaterally or through various derivatives provided by financial institutions. To purchase ETS allowances, companies need to open a trading account or a maritime operator holding account in the EU Union Registry. Shipping companies can already open trading accounts to start buying allowances. Allowances do not expire and may be banked for future years.

Note: The full FAQ on EU ETS inclusion of marine shipping can be found here.

Photo credit: Argus Media
Published: 16 November, 2023

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Wind-assisted

Dealfeng to equip Singapore-based Hung Ze’s chemical tankers with rotor sails

Project marks Chinese firm Dealfeng’s first overseas commercial contract for its wind-assisted propulsion technology which entails equipping a new series of 14,000 DWT chemical tankers with Dealfeng Rotor Sails.

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Singapore-based Hung Ze chemical tankers to be equipped with Dealfeng rotor sails

Dealfeng, a Chinese provider of wind-assisted propulsion systems, on Tuesday (20 May) said it has assigned a cooperation agreement with Singapore-based shipowner Hung Ze Shipping.

The partnership will equip a new series of 14,000 DWT chemical tankers with Dealfeng® Rotor Sails. 

Each vessel will feature a 5m x 24m Dealfeng Rotor Sail installed on its forecastle deck. Collaborating with maritime software leader NAPA, the project will utilise route optimisation systems to maximise the efficiency of wind-assisted voyages, further enhancing fuel savings and emissions reduction while improving overall energy performance.

“The first vessel in the series is scheduled for delivery with the rotor sail system in the fourth quarter of 2025. Preliminary calculations indicate that the technology will achieve approximately 8% fuel savings on the vessel’s trading routes,” the company said in a social media post. 

The project marked Dealfeng’s first overseas commercial contract for its wind-assisted propulsion technology.

Dealfeng, a clean energy technology company specialising in the R&D, manufacturing, and EPC services of shipborne energy-saving systems, has long focused on developing Wind Assisted Propulsion Systems (WAPS). Its core product, the Rotor Sail, harnesses wind energy via the Magnus effect to provide auxiliary propulsion for vessels. 

Tailored to different ship types, the system offers fuel and carbon emission reductions of 5%–25%, with even greater efficiency under favorable wind conditions. Dealfeng’s Rotor Sail technology has obtained certifications from multiple classification societies and has been successfully deployed across numerous vessels, accumulating years of operational experience that validate its safety, reliability, and effectiveness.

Hung Ze operates a diverse fleet ranging from 5,000 DWT vessels to MR product tankers. 

 

Photo credit: Dealfeng
Published: 22 May, 2025

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Newbuilding

Höegh Autoliners latest LNG dual-fuel PCTC en route to Shanghai for bunkering

The 9,100 CEU “Höegh Sunrise”, currently sailing the seas, is on its way to Shanghai for bunkering before sailing to Japan and then towards Europe.

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Höegh Autoliners latest LNG dual-fuel PCTC en route to Shanghai for bunkering

Höegh Autoliners on Tuesday (20 May) said its latest liquefied natural gas (LNG) dual-fuel pure car and truck carrier has departed China Merchants Heavy Industry’s yard, ready to commence its commercial operations.

The 9,100 CEU Höegh Sunrise, currently sailing the seas, is on its way to Shanghai for bunkering before sailing to Japan and then towards Europe. 

The PCTC is the fifth in a series of 12 Aurora Class vessels built by the shipyard in China. The first eight Auroras are or will be equipped with engines primed to run on LNG and low-sulphur oil. 

These vessels can be converted to run on ammonia later. By 2027, Höegh Autoliners said the four last vessels of the series will be able to run net zero on ammonia directly from the yard when delivered.

Manifold Times previously reported the naming ceremony of Höegh Autoliner’s fourth Aurora Class newbuild, Höegh Sunlight, at Taicang Haitong Auto Terminal.

Related: Höegh Autoliners names LNG-powered RoRo ship “Höegh Sunlight” in China|
Related: Gasum completes SIMOPS LNG bunkering operation of PCTC “Höegh Sunlight”

 

Photo credit: Höegh Autoliners
Published: 22 May, 2025

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Events

China: Summit ends with consensus to strengthen partnerships in green shipping

Green ShipTech Innovation Asia Summit 2025, held in Shanghai on 16 May, concluded with unanimous consensus on strengthening multilateral partnerships to accelerate the industry’s green transition.

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China: Summit ends with consensus to strengthen partnerships in green shipping

The Green ShipTech Innovation Asia Summit 2025, organised by Shine Consultant, was successfully held in Shanghai on 16 May. 

The summit revolved around the theme Diversified Innovation for Sustainable Green Transformation, gathering experts, scholars and business executives from the shipping, shipbuilding, and green technology sectors to discuss trends and practical approaches in green transformation, technological innovation, and international cooperation within the shipping industry.

Session I: Green Development Strategies and Pioneer Practices Toward Zero Carbon Goals

The summit was chaired by Professor Liu Xiangwei from Shanghai Maritime University. Sun Haihua, Deputy Director of the Shanghai Arbitration Commission, Executive Deputy Director and Secretary-General of the Shanghai International Shipping Center Development Promotion Association, and Yan Wei, Vice President of Shanghai Maritime University, delivered opening remarks, emphasising the shipping industry’s crucial role in achieving global zero-carbon goals.

sun haihua

Sun Haihua pointed out that green ships have become an inevitable trend in the global shipping industry. As the world’s largest ship-owning and shipbuilding nation, China is significantly impacted by this development. 

As a cross-industry and cross-regional comprehensive association, the Shanghai International Shipping Center Development Promotion Association will build more platforms to facilitate in-depth cooperation among shipbuilders, shipping companies, research institutions, and other stakeholders. It will also enhance collaborative innovation across industry, academia, research, and application sectors to jointly address the technical challenges of green ships.

yan wei

Yan Wei pointed out that the IMO’s net-zero emissions goal aligns with China’s dual-carbon strategy, providing a clear roadmap for the global shipping industry’s low-carbon transition. The core of green shipping development lies in technical talent cultivation.

Shanghai Maritime University has introduced new courses in renewable energy, advanced materials, green ship technology, and dual-fuel engine systems. The university has also achieved breakthroughs in multiple green technology standards, including shipboard zero-carbon power technologies, ensuring a sustainable talent pipeline for translating technological innovations into practical applications.

Bo Cerup-Simonsen, CEO of the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping, presented on the post-MEPC 83 path to zero emissions, analysing the impact of the latest IMO policies on the shipping industry. Lu Yanhui, Deputy General Manager of COSCO Shipping Heavy Industry Co., Ltd., shared insights on the practical experiences and future plans of shipping companies in their green transition.

Wu Jianyi, Technical Director and General Manager of the Marine Technology & Innovation Center at China Merchants Energy Shipping Co., Ltd. (CMES), discussed the green transformation and development of the shipping industry from a ship technology perspective.

Karim Fahssis, Head of Decarbonisation for China at Maersk, detailed Maersk’s decarbonisation initiatives. Vivi Wong, Head of Digital Products of MSC Greater China of MSC, showcased the practical application of digital solutions in the shipping industry. Huang Yiming, Assistant Director of the Design Institute at Shanghai Waigaoqiao Shipbuilding Co., Ltd., highlighted advancements in green and digital ship design and manufacturing.

panellist

A panel discussion on Zero-Carbon Transition in the Global Shipping Industry – Synergizing International Cooperation and Technological Innovation was moderated by Wee Meng TAN, Chief Projects Officer at the Global Centre for Maritime Decarbonisation (GCMD), with panelists including Keiichiro Nakanishi, Managing Executive Officer Responsible for East Asia Region at Mitsui O.S.K. Lines, Ltd. (MOL), Wu Jianyi, Technical Director and General Manager of the Marine Technology & Innovation Center at China Merchants Energy Shipping Co., Ltd. (CMES), John Kollander, General Manager of Stena RoRo Asia & Owners Representative China at Stena RoRo and Florent D’AZEVEDO, Head of Strategic BD at CMA CGM China.

Session II: Green Shipbuilding and Retrofitting Forum

Li Zhengjian, Chief Expert and Senior Engineer at the China Society of Naval Architects and Marine Engineers, emphasized the shipbuilding industry’s pivotal role in ecological civilization development. Li Zhonggang, Vice President at China Ship Design and Research Center Co., Ltd, presented the latest advancements in green and low-carbon ship technologies.

Bai Junli, Deputy Director of Innovation & Development Center at Wuchang Shipbuilding Heavy Industry Group Co., Ltd., introduced the design of wind-assisted methanol dual-fuel cargo ships. Thibaut Raeis, Business & Technical Solutions Director of GTT China, explored the technological advantages and application prospects of GTT technology in promoting sustainable shipping.

Session III: Green Shipping Ecosystem Cooperation Forum

Wee Meng TAN, Chief Projects Officer at the Global Centre for Maritime Decarbonisation (GCMD), shared insights on From Pilots to Progress: Accelerating Maritime Decarbonisation through Real-World Trials. Zhang Qingsheng, President Assistant of Fujian Guohang Ocean Shipping (Group) Co., Ltd. and General Manager of Shanghai Fujian Guohang Ocean Shipping Management Co., Ltd., discussed technological applications for low-carbon and efficient ship management.

Xu Yingkun, Key Account Manager at ACT China, analyzed the Navigating EU Emission Trading and Maritime Transition: Strategies for Compliance in the Asia-Pacific region. Zhu Feng, Head of the Ballast Water Convention Research Office at Hebei Maritime Safety Administration introduced the Latest Developments in Ship Ballast Water and Biofouling Management, highlighting their technical implications for maritime environmental governance. 

A panel discussion on green shipping opportunities, challenges, and ecosystem cooperation in the Asia-Pacific was moderated by Zhao Cuiyun, Deputy Director of the Institute for the Construction of the Shipping Center and Director of the Green Shipping Research Office at the Shanghai International Shipping Institute.

The panelists included Yang Lixin, Deputy Secretary-General of the Shanghai International Shipping Center Development and Promotion Association, Gou Yingdi, Director of Sustainable Development and General Manager of Technology Development (Innovation) Center at Seacon Shipping Group, Yuan Chao, General Manager of Strategy and Investment at CSSC (Hong Kong) Shipping Company Limited and Pan Jinfeng, General Manager of Digital Intelligence Promotion Department at COSCO Shipping (Qidong) Offshore Co. Ltd.

According to organiser Shine Consultant, the Green ShipTech Innovation Asia Summit 2025 has established a platform for in-depth knowledge exchange and cross-sector collaboration, underscoring the critical role of green technologies in enabling sustainable maritime development. 

The summit concluded with unanimous consensus on strengthening multilateral partnerships to accelerate the industry’s green transition, thereby supporting the achievement of global decarbonisation targets set by the IMO and Paris Agreement.

The event was hosted by the Shanghai International Shipping Center Development and Promotion Organization, and co-organised by Shanghai Maritime University, the Shanghai Institute of Navigation, Jiangsu Association of Shipbuilding Industry, Shanghai Association of Shipbuilding Industry, the Jiangsu Society of Naval Architects and Marine Engineers, and supported by the Shanghai Port Association, the Hubei Association of Shipbuilding Industry and the Shanghai International Shipping Institute. 

 

Photo credit: Shine Consultant
Published: 22 May, 2025

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