How Shippers Can Slash EU ETS Costs with Sustainable Biofuel Programmes

Proposed 16 December 2025

As the European Union’s Emissions Trading System (EU ETS) for shipping ramps up to full implementation on 1 January 2026, shippers face a steep rise in compliance costs. From this date, shipping companies must submit allowances for 100% of their verified CO₂ emissions on all voyages involving EU ports—up from the current phase-in levels.

But did you know? By participating in sustainable biofuel programmes offered by major ocean carriers, shippers can reduce or even eliminate their EU ETS surcharges. These programmes not only help meet regulatory requirements but also deliver tangible cost savings and environmental benefits.

In this post, we’ll explain what the EU ETS is, who pays for it, and how leading carriers are helping shippers cut costs through certified biofuel (or others) solutions. We’ll also show how Searoutes’ carbon reporting and EU ETS visibility tools can help you maximise your ROI.

What Is the EU ETS, and Who Pays for It?

The EU Emissions Trading System (EU ETS) is the world’s first and largest carbon market. It operates on a cap-and-trade principle: a limit (cap) is set on the total amount of greenhouse gases that can be emitted by sectors covered by the system. Companies must hold emissions allowances for every tonne of CO₂ they emit, and can trade these allowances as needed.

EU ETS for Shipping: Key Facts

• Scope: Applies to all voyages to, from, and between EU ports, as well as 50% of emissions from voyages to/from non-EU ports.
• Phase-in: Since 2024, shipping companies have been required to surrender allowances for a percentage of their emissions, rising to 100% from 2026.
• Who pays? The shipping company (carrier) is legally responsible for surrendering allowances. However, carriers are increasingly passing these costs on to shippers via surcharges.

“The inclusion of maritime transport in the EU ETS is a landmark step in the EU’s efforts to decarbonise the sector and meet its climate goals.” — European Commission, EU ETS for shipping

Major Biofuel programmes provided by carriers to cut EU ETS Costs

Major ocean carriers are now offering biofuel and green shipping programmes that allow shippers to reduce their EU ETS surcharges—sometimes to zero. Here’s how:

1. MSC: Biofuel Solution with Direct Surcharge Discounts

• Programme: MSC Biofuel Solution
• How it works: Shippers purchasing certified biofuel receive a discount on their EU ETS surcharge equivalent to the percentage of CO₂ reduction achieved (e.g., 84% reduction = 84% discount).
• Verification: MSC uses DNV to audit and certify emissions reductions, ensuring transparency and compliance.

2. Hapag-Lloyd: Ship Green for Full Surcharge Waivers

• Programme: Ship Green
• How it works: The EU ETS charge is waived or adjusted based on the emission reduction level chosen. For example, the Ship Green 100 option offers a 100% surcharge credit.
• Benefit: Clear, documented savings for shippers.

3. CMA CGM: ACT+ CO₂ Reduction with Certified Savings

• Programme: ACT+ CO₂ REDUCTION
• How it works: Shippers receive certified CO₂ reductions instead of paying the surcharge, with savings documented via ISO-compliant declarations.

4. Maersk: ECO Delivery for Lower GHG Footprint

• Programme: ECO Delivery Ocean
• How it works: Uses low-GHG fuels to reduce emissions by up to 80%, helping shippers lower their value chain emissions and compliance costs.

5. COSCO: Hi-ECO for Green Shipping 

• Programme: Hi-ECO Green Shipping Product 
• How it works: Uses B24 marine biofuel (24% biofuel, 76% conventional fuel) to reduce CO₂ emissions by up to 20%. 

6. Other carriers

Yang Ming is advancing decarbonisation through LNG (liquefied natural gas). The Taiwanese is involved in green corridor initiatives between Asia and North America, collaborating with major carriers to cut emissions and comply with EU ETS and FuelEU Maritime.

ZIM is also active in the energy transition, focusing on LNG-powered ships to reduce CO₂ emissions and meet EU ETS requirements. ZIM current efforts prioritises LNG, and has no recent biofuel programme announced.

Why are biofuel programmes beneficial?

1. Immediate Cost Savings: By participating in these programmes, shippers can offset EU ETS surcharges—sometimes entirely—through certified emissions reductions.
2. Future-Proofing Against Rising Costs: The EU ETS cap tightens over time, meaning allowance prices are expected to rise. Early adoption of biofuel programmes locks in savings and reduces exposure to future cost hikes.
3. Enhanced Sustainability Credentials: Using certified biofuels helps shippers meet ESG targets and appeal to eco-conscious customers, while ensuring compliance with evolving regulations.

Why not LNG for decarbonisation? 

LNG reduces CO₂ but can emit methane, which is a powerful GHG. The net climate benefit depends on engine technology and methane management. LNG can lower CO₂ liability but must address methane slip especially as methane is included in EU ETS from 2026. 

Biofuels generally produce negligible methane emissions during combustion, as they are derived from biomass or waste and do not contain natural gas (Upstream emissions may occur with some types of feedstocks).

How Searoutes helps you monitor and optimise EU ETS savings

At Searoutes, we provide carbon reporting and EU ETS monitor solutions that:

• Track and verify emissions reductions from biofuel programmes.
• Calculate your exact EU ETS liability and potential savings.
• Demonstrate ROI for biofuel purchases and compliance strategies.

“Searoutes’ solutions ensure you’re not just compliant, but optimising every opportunity to reduce costs and emissions.” — Searoutes Blog: EU ETS for Shipping

Conclusion: act now to reduce your EU ETS burden

The full implementation of EU ETS for shipping is kicking off. Shippers who act now to participate in carrier biofuel programmes can:

• Reduce or eliminate EU ETS surcharges
• Future-proof against rising compliance costs
• Boost sustainability performance

Contact us to learn how we can help you navigate EU ETS and achieve your sustainability goals.About Searoutes Searoutes is a leading provider of freight emissions reporting and EU ETS monitoring solutions for the shipping industry. Our tools help shippers and carriers measure, report, and reduce emissions—saving costs and supporting a sustainable future.