Two instruments, a shared aim, different mechanisms
EU ETS Maritime links cost and the obligation to surrender allowances to covered emissions; FuelEU Maritime focuses on the greenhouse gas intensity of the energy used on board. The two must be managed separately in the compliance system and in contractual calculations. Ship type, tonnage, voyage and the ports involved all matter in deciding whether a ship is covered.
The EU ETS implementation timetable
According to the European Commission’s explanations, commercial shipping has been covered by the ETS from 2024 emissions, and allowances are surrendered in phases: 40 per cent for 2024 emissions, 70 per cent for 2025 and the full share for emissions from 2026 onwards, within the framework of the relevant rules. From 2026, gases beyond CO₂ also come within the scope of reporting. These figures must be verified against the legal text, the scope of coverage and the latest official notice before they are used operationally.
Contractual logic
In a time or voyage charter, the party that controls decisions on operations, fuel and route is not necessarily the party with formal compliance responsibility. That is why the provision of data, the allocation of cost, notices, audit and settlement must be made clear in the contract. Cost should not be assigned automatically to one party without regard to the specific wording of the contract.
A fleet exposure matrix
For each ship or service, complete columns for type and tonnage, route and ports, MRV data, the party responsible for reporting, the party responsible for cost under the contract, FuelEU status and settlement events. It is suggested that the regulatory, operations, finance and contracts units review significant changes every month. This report does not replace specialist review of European Union law.
Practical checklist
- Match the ship type and the covered route against the official rules
- Keep ETS and FuelEU in two separate rows
- Make the parties responsible for data and payment clear in the contract
- Check the version of the European rules in each reporting period
Frequently asked questions
Are ETS and FuelEU the same regulation?
No. Their mechanisms and the basis of calculation differ, and both can apply to the same operation at the same time.
Editorial note: this article is written for awareness and management decision-making. Applying any rule depends on the authentic current text, the legal position of the State concerned and the facts of the case. The content is independent and implies no endorsement by, or affiliation with, IMO.