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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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LNG Bunkering

PIL’s LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on LNG and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

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PIL's LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

Singapore-based Pacific International Lines Pte Ltd on Monday (20 July) said its first 13,000 TEU LNG dual-fuel container vessel, Kota Elok, recently made her maiden call to Singapore on 15 July.

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on liquefied natural gas (LNG) and low-sulphur fuel oil that helps reduce our greenhouse gas emissions. 

The vessel also incorporated energy-saving features and digital technologies to reduce fuel consumption and enhance operational performance, as well as a bow windshield to improve aerodynamics, contributing to improved fuel efficiency and lower emissions over the course of long-haul voyages.

“Following Singapore, Kota Elok will continue her voyage on our East Coast Service 1 (ES1) route to South America, calling at ports in Brazil, Uruguay, and Argentina before returning to Asia,” the company said in a social media post. 

Kota Elok also became PIL’s first vessel to receive Lloyd’s Register certification for compliance with the IACS UR E26 and UR E27 cyber security requirements.

Developed by the International Association of Classification Societies (IACS), UR E26 and UR E27 are mandatory cyber resilience requirements for newbuild vessels contracted from 1 July 2024. 

 

Photo credit: Pacific International Lines
Published: 21 July, 2026

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LNG Bunkering

CIMC SOE secures order for 12,000-cbm LNG bunkering vessel from Sinopec Clean Energy

Once operational, the vessel is expected to strengthen Sinopec’s domestic coastal LNG bunkering network and help address gaps in China’s alternative fuel bunkering infrastructure.
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CIMC SOE secures order for 12,000-cbm LNG bunkering vessel from Sinopec Clean Energy

China’s Nantong CIMC Sinopacific Offshore & Engineering Co., Ltd. (CIMC SOE) recently signed a contract with Sinopec (Beijing) Clean Energy Co., Ltd. to build a 12,000-cubic metre (m3) LNG bunkering vessel, according to Chinese maritime media.

The vessel is scheduled for delivery in 2028 and will support Sinopec’s efforts to expand its presence in the marine clean energy sector.

Once operational, the vessel is expected to strengthen Sinopec’s domestic coastal LNG bunkering network and help address gaps in China’s LNG bunkering infrastructure.

With this signing , CIMC Pacific Offshore Engineering’s LNG bunkering vessel orderbook is further strengthened, maintaining its leading position in the global market for small and medium-sized LNG bunkering vessels.

The contract also marked another milestone for CIMC SOE, which has seen a sharp increase in orders and business performance this year amid a surge in domestic LNG vessel demand.

 

Photo credit: Nantong CIMC Sinopacific Offshore & Engineering
Published: 21 July, 2026

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Nuclear

ABS awards AiP to Korean institute for SMR-powered container ship concept design

KRISO says AiP recognises the technical feasibility and safety of its concept design, marking an important milestone toward the development of next-generation nuclear-powered commercial ships.
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ABS awards AiP to Korean institute for SMR-powered container ship concept design

Korea Research Institute of Ships & Ocean Engineering (KRISO) on Thursday (16 July) received Approval in Principle (AiP) from the American Bureau of Shipping (ABS) for its concept design of a 15,000 TEU Small Modular Reactor (SMR)-powered container ship utilising Molten Salt Reactor (MSR) technology.

KRISO said the AiP recognises the technical feasibility and safety of its concept design, marking an important milestone toward the development of next-generation nuclear-powered commercial ships.

“This achievement demonstrates international recognition of KRISO’s technological capabilities in the rapidly evolving field of nuclear-powered shipping, supporting the transition toward low-carbon maritime transport,” it said. 

Building on this milestone, KRISO will continue advancing basic and detailed ship design, paving the way for future demonstration and commercialisation of SMR-powered vessels. 

Through continued R&D and international collaboration, KRISO remains committed to strengthening next-generation maritime technologies and contributing to the safe deployment of nuclear propulsion in the maritime industry.

 

Photo credit: Korea Research Institute of Ships & Ocean Engineering
Published: 21 July, 2026

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