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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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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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Methanol

World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Operation involved the delivery of approximately 2,800 MT of green methanol to “Arctic Tern” via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel “M/V Hai Gang Zhi Yuan”.

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World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Marine fuel provider World Fuel on Tuesday (21 July) said it successfully completed the first green methanol bunkering of M/V Arctic Tern, with EUKOR Car Carriers and SIPG Energy at the Port of Shanghai. 

Arctic Tern is the first vessel in the new Shaper Class series of car carriers. 

The operation involved the delivery of approximately 2,800 MT of green methanol to Arctic Tern via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel M/V Hai Gang Zhi Yuan, the largest vessel of its kind in operation. 

The bunkering operation was carried out at Haitong Terminal, Waigaoqiao Port Area, Shanghai Port, with cargo handling operations conducted simultaneously during bunkering.

This marks EUKOR Car Carriers’ first green methanol operation and the first time Arctic Tern has bunkered methanol since its delivery on 9 July. The operation marked the first bunkering at Shanghai Port of green methanol produced locally in Shanghai for an international PCTC operator. 

It also demonstrated the city’s integrated green methanol value chain, spanning local production, storage and bunkering, and established a replicable “Shanghai Model” for green methanol supply.

World Fuel arranged the supply and delivery of the fuel on behalf of EUKOR Car Carriers, working with SIPG Energy as the physical supplier at the Port of Shanghai.

The green methanol supplied was produced from municipal solid waste, ISCC-EU certified, and had a carbon intensity value below 25 gCO₂e/MJ.

Arctic Tern is the first of fourteen Shaper Class vessels ordered by Wallenius Wilhelmsen. With a capacity of 9,300 car equivalent units and methanol dual-fuel capability, the vessel will be operated by EUKOR Car Carriers, jointly owned by Wallenius Wilhelmsen and Hyundai Motor Group. Following her first green methanol bunkering, Arctic Tern will continue her maiden voyage from Asia to Europe.

Xavier Leroi, COO Shipping Services at Wallenius Wilhelmsen and CEO of EUKOR Car Carriers, said: “Completing Arctic Tern’s first green methanol bunkering shortly after delivery is a significant milestone towards our decarbonisation ambition for both EUKOR Car Carriers and Wallenius Wilhelmsen. It demonstrates how investments in next-generation vessel technology and fuel flexibility are being translated into real-world operations. 

“This achievement reflects the strong collaboration between all parties involved. Together, we have shown how partnerships across the maritime value chain can help make lower-emission fuels available and operationally viable at scale.”

Mark Tamsitt, SVP Global Marine Sales at World Fuel, said, “The first bunkering event with a new fuel is a significant moment for any shipowner, and our role is to make it as seamless as possible. By connecting EUKOR Car Carriers with SIPG Energy’s proven green methanol capability at the Port of Shanghai, we were able to deliver on reliable supply, fuel quality, and safe processes. As more of our customers bring methanol dual-fuel tonnage into service, we are committed to being the partner that makes these kinds of operations routine.”

Mr. Zhang Da, General Manager of SIPG Energy, said, “Welcoming Arctic Tern to the Port of Shanghai for her first green methanol bunkering demonstrates the strength and maturity of our supply capability. Building on our well-established methanol ship-to-ship bunkering services for container vessels, we have already extended such services to pure car and truck carriers (PCTCs). This bunkering sets a new record for the largest single SIMOPs green methanol bunkering for PCTCs in China, marking another step in building Shanghai’s position as a global green energy hub for international shipping.”

This operation follows Wallenius Wilhelmsen’s announcement on 9 July that Arctic Tern would complete her first methanol bunkering shortly after delivery. The vessel entered service on routes between Asia and Europe immediately following handover from China Merchants Jinling Shipyard in Nanjing.

 

Photo credit: World Fuel
Published: 22 July, 2026

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Ammonia

HPA and MB Energy develop safety concept for STS ammonia bunkering

HPA says the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.

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HPA and MB Energy develop safety concept for STS ammonia bunkering

The Hamburg Port Authority (HPA) and integrated energy company MB Energy on Tuesday (21 July) said they have completed a comprehensive risk analysis and developed a dedicated safety concept for ship-to-ship ammonia bunkering.

MB Energy said the analysis lays the groundwork for the safe introduction of ammonia as a future marine fuel.

“With our planned ammonia import terminal in Hamburg-Blumensand, MB Energy intends to provide the reliable land side supply infrastructure needed to support this transition across northern German ports,” it said in a social media post. 

Mabanaft Group was renamed to MB Energy last year and merged over 50 existing brands under one identity. 

Separately, HPA said the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.

“The focus is in particular on container ships, cruise ships as well as RoRo and ConRo (Container/RoRo) ships,” it said. 

“We expect ammonia to establish itself as an alternative marine marine fuel in the coming years. With our preparatory work, we are already creating the conditions to welcome the first ammonia-powered ships in Hamburg and to bunker them safely.:

HPA added that the import terminal for ammonia planned by MB Energy from 2029 will make a decisive contribution to ensuring the reliable availability of ammonia as a bunker fuel in northern German ports in the long term. 

“The use of an ammonia bunker barge is considered a possible addition to the landside infrastructure to enable ship bunkering in the port and beyond in the future,” it said.

Related: Mabanaft Group renames as MB Energy, merging over 50 brands under one identity

 

Photo credit: Hamburg Port Authority
Published: 22 July, 2026

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Milestone

GCMD: Project CAPTURED achieves two regulatory milestones for onboard captured CO2

CO2 captured onboard during the project has been formally recognised for compliance under the EU ETS while a proposal submitted to MEPC 84, based on the project, has received IMO’s in-principle support.

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Global Centre for Maritime Decarbonisation (GCMD) on Wednesday (21 July) said Project CAPTURED has achieved two regulatory milestones that strengthen the commercial case for onboard carbon capture and storage (OCCS).

This comes following its world’s first demonstration of an end-to-end value chain for onboard captured and liquefied CO2 (LCO2).

Completed in June 2025, the pilot showed that CO2 captured onboard a vessel can be offloaded ship-to-ship, transported overland and permanently bound through carbon mineralisation—a process that converts captured CO₂ into stable materials for industrial use.

The CO2 captured onboard during Project CAPTURED has been formally recognised for compliance under the European Union Emissions Trading System (EU ETS). This means the verified tonnage of captured CO2 can be deducted from emissions requiring the surrender of EU Allowances (EUAs).

To qualify for this recognition, the CO2 must be chemically bound permanently in eligible products. Project CAPTURED demonstrated that CO2 captured onboard vessels can meet this requirement through carbon mineralisation.

The data and learnings from the same demonstration formed the basis of a proposal submitted to MEPC 84. This proposal received in-principle support from the International Maritime Organization (IMO) for recognising carbon mineralisation as a form of permanent CO₂ storage.

Complementing geological sequestration, which is already accepted by the IMO, this recognition broadens the downstream options for CO2 captured onboard vessels, and supports the development of maritime carbon value chains. Beyond providing a permanent storage pathway, carbon mineralisation also creates the potential for captured CO2 to serve not only as a waste stream requiring permanent storage, but also as a feedstock for industrial applications through carbon mineralisation, extending emissions reductions beyond the shipping value chain.

Professor Lynn Loo, CEO, GCMD, said, “Project CAPTURED has moved OCCS beyond technical demonstration. The acceptance of the EU ETS deduction gives captured CO₂ a compliance value. At the same time, IMO’s in-principle support for carbon mineralisation will help clarify how captured CO2 can be treated after it leaves the vessel. Together, these milestones turn a pilot into a verified reference case for maritime carbon logistics, one that links regulatory recognition, commercial value and emissions impact.”

 

Photo credit: Venti Views on Unsplash
Published: 22 July, 2026

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