By Stephanie Daniels
- The EU Emissions Trading System is increasing shipping costs across Europe by putting a price on maritime emissions, making compliance knowledge essential for ship operators.
It has become public knowledge that the EU Emissions Trading System (EU ETS) is aligning its marine sector activity in order to reshape the cost of shipping across Europe by placing a direct carbon price on maritime emissions. As the rules tighten and compliance obligations increase, understanding how the system works, and what is required, has become essential for ship operators.
Get the EU ETS Position.
The EU ETS operates on a cap‑and‑trade principle. Regulators set a cap on the total amount of greenhouse gases that can be emitted. Within that cap, companies receive or purchase emission allowances, which can then be traded. The financial incentive is clear: reduce emissions or bear the cost.
How the EU ETS applies to shipping
The system has significant reach across maritime operations:
- 100% of emission from voyages between EU ports are covered
- 50% of emissions from voyages into or out of the EU fall under the scheme
- 100% of emissions at berth within EU ports are included
With enforcement expanding and costs becoming clearer, compliance planning is now a core operational consideration.
Key compliance dates for 2026
There are several important milestones shipping companies must be aware of this year:
- 31 March 2026: submission of verified emissions data for the previous year
- 30 September 2026: surrender of allowances covering 70% of 2025 emissions
These deadlines form part of the phased implementation of the maritime ETS, which is now approaching full application.
Supporting compliance through emissions trading
Managing ETS obligations requires access to the correct accounts and trading mechanisms. Peninsula supports clients by helping them navigate this process, including:
- Supporting the setup of Maritime Operator Holding Accounts (MOHAs)
- Managing trading accounts used to purchase allowances from the market
- Purchasing allowances on behalf of clients for a fixed fee, with subsequent transfer to the client’s account
While accounts cannot be opened on a client’s behalf, Peninsula provides support throughout the process and manages allowance purchases to help simplify compliance.
Looking beyond trading: reducing emissions at source
While emissions trading is a regulatory requirement, long‑term compliance also depends on reducing emissions themselves. Two key strategies are:
- Using cleaner fuels with lower emissions profiles, such as B‑100 biofuels and bio‑LNG
- Improving vessel energy efficiency, reducing overall fuel consumption and emissions intensity
These measures not only reduce ETS exposure but also support wider decarbonisation goals.
Recent regulatory developments
The EU EmissionsTrading System (EU ETS): From 1 January 2026, the system expanded to include methane and nitrous oxide emissions, alongside carbon dioxide. This significantly broadens the scope of regulated greenhouse gases for maritime operators.
Year 2026 also marks the end of the phase‑in period so companies are now required to cover 100% of verified emissions, compared to 70% in 2025 and 40% the year before.
Maria Angeles Lopez, Decarbonisation Manager, Peninsula said: “With the EU ETS now fully embedded into maritime operations, compliance is no longer a future consideration but a current operational reality. Understanding the scope, timelines and available options, from emissions trading to fuel and efficiency strategies, is essential for ship operators navigating the years ahead.”
The European Commission meanwhile is expected to carry out a report towards the end of 2026 in assessment of the ETS journey which is with the view of considering whether to extend to smaller cargo and offshore vessels between 400 and 5,000 gross tonnes or not. “Depending on the findings, this could lead to further legislative proposals in a future revision of the ETS.”
