Maritime Shipping EU ETS Requirement: Looking At Year One

In 2024, the European Union took a decisive step toward decarbonizing one of its most emissions-intensive sectors: maritime transport. For the first time, the EU Emissions Trading System (EU ETS), a cornerstone of the bloc’s climate policy, was expanded to include CO₂ emissions from large ships. According to EU figures, ETS has reduced carbon emissions by 50% since it was implemented in 2005. Given that maritime transport accounts for 3%-4% of the EU’s total greenhouse gas emissions, its inclusion in ETS was a significant milestone in both regulatory policy and industry practice. The expansion of EU ETS points up the critical importance of carbon accounting for shipping line operators. We will look at the first year of the maritime sector’s participation in EU ETS. This includes the rationale, implementation, results, challenges, and how innovative tools are helping shipping companies meet the new compliance mandates.

Why Maritime Shipping Was Included in the EU ETS

The expansion of ETS was designed to help the EU meet its broader climate targets, particularly the goal of reducing net greenhouse gas emissions by at least 55% by 2030, compared to the baseline of 1990. According to the EU’s 2024 report on CO₂ emissions from maritime transport, voyages to and from EU ports in 2023 created 126.7 million tons of emissions, a 6.5% decrease from 135.5 million tons in 2022. By including maritime shipping in the carbon market, the EU aims to:

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  Align shipping with decarbonization goals already applied to other industries.
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  Encourage the adoption of lower-emission fuels such as LNG, biofuels, and e-methanol.
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  Promote investment in cleaner technologies like wind-assisted propulsion (WAP) or carbon capture.
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  Enhance transparency by requiring rigorous reporting, improving both compliance and data accuracy.

Implementation Details

The policy applies to all ships of 5,000 gross tonnage (GT) and above that call at EU ports. Emissions coverage includes:

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  100% of CO₂ emissions on intra-EU voyages.
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  50% of CO₂ emissions on voyages between EU ports and non-EU destinations.

Importantly, the EU ETS rollout for maritime shipping is being phased in:

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  2024: 40% of verified emissions can be covered by allowances, i.e., a cap-and-trade system that earmarks funds for reinvestment in climate mitigation efforts, including maritime decarbonization. The first deadline for surrendering 40% of verified 2024 emissions is September 30.
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  2025: this figure increases to 70%.
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  2026 and following: 100% coverage.

Since 2018, shipping companies have been subject to Monitoring Reporting, and Verification (MRV) requirements by the EU, ensuring transparent tracking of emissions and enforcement. On May 19, the EU and the U.K. agreed to link their emissions trading systems, a huge step toward market stability. This means that companies operating in each jurisdiction can trade emissions allowances with those operating in the other, creating a single market price.

Achievements and Outcomes in 2024

The first year yielded promising signs. Initial compliance among major carriers was high, reflecting serious industry engagement. Many companies, especially those already disclosing emissions for ESG purposes, found the MRV framework of EU ETS familiar and manageable. Preliminary data suggests a modest reduction in CO₂ emissions, largely driven by more efficient route planning and increased slow steaming to reduce fuel consumption. The EU also reported substantial revenue generated from the sale of allowances. Technologies employed to meet EU ETS requirements in maritime include WAP, hull and propeller cleaning, voyage planning and weather routing. According to research from the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping, these tactics require little investment and can provide fuel savings of up to 15%. Feedback from stakeholders has been largely constructive. Regulators praised the industry’s willingness to adapt, while carriers called for clearer long-term signals to justify capital investments in alternative fuels and retrofitting technologies.

Challenges and Lessons Learned

Despite overall progress, the first year wasn’t without hurdles. Shipping companies, especially smaller operators, faced administrative burdens related to emissions tracking and allowance procurement. They also were leery of investing in technology while the maritime carbon trading market is still maturing, according to Lloyd’s Register as reported by Reuters. Also, integration with existing EU ETS systems posed initial compatibility and training issues. There were some market responses, such as shifts in transshipment patterns or strategic rerouting to reduce EU port calls and minimize ETS exposure. While legal, these moves highlight the importance of global alignment in climate policy. The EU also identified areas for policy refinement, such as improved guidance for emissions calculations and potential expansion of coverage to include methane and nitrous oxide in the future.

How Searoutes Supports Compliance and Emission Reduction

Searoutes, a leading provider of digital emissions intelligence, has played a critical role in supporting shipping companies during this transition. Our advanced routing engine combines satellite data, ship characteristics, and weather patterns to calculate emissions with high precision. Searoutes’ Vessel API offers reliable, cleaned AIS data, including satellite and terrestrial sources, with five-plus years of historical vessel tracking. It provides end points to fetch vessel traces, current positions, predictive ETAs, and detailed ship specifications, backed by proprietary routing algorithms and 99.9% uptime. Searoutes’ CO₂ API delivers high-precision emissions data using proprietary routing algorithms, AIS (terrestrial + satellite), vessel specs, and fuel details. It offers both historical and real-time CO₂e modeling, supports scenario optimization, and integrates seamlessly via API. Overall, Searoutes’ platform enables accurate emissions reporting for MRV compliance; route optimization to lower carbon intensity; and scenario modeling that allows carriers to simulate the impact of slower speeds, route changes, or alternative fuels. By making emissions data actionable, Searoutes empowers maritime stakeholders to comply with ETS regulations and operate more sustainably.

Are You Ready for Verified EU ETS Compliance?

The EU’s inclusion of maritime shipping in the ETS has made the industry more accountable and climate conscious. While administrative and operational challenges remain, the combination of clear regulation, phased implementation, and digital tools has made the policy’s first year largely successful. Close collaboration between regulators, carriers, and tech innovators will be key to achieving even greater emissions reductions. As shipping decarbonization gathers momentum, the ability to track, report, and optimize emissions performance will become an essential capability for shipping lines. Is your company prepared for the next phase of EU ETS compliance? Discover how Searoutes can help you accurately monitor emissions and optimize shipping operations for greater sustainability. Get in touch with us today to schedule a free consultation or demo.