Emission regulations
Both IMO and EU are introducing several measures to reduce GHG emissions from shipping. We have prepared a short summary of different initiatives.
General cargo ships over 5,000 GT are governed by a combination of international and regional emission regulations aimed at reducing greenhouse gas emissions and improving energy efficiency across the
maritime sector.
Emissions are reported on EU and international level
From the beginning of 2025, EU MRV reporting scope extended to cover general cargo vessels over 400 GT meaning that all Coaster vessels are now in the reporting and verification scope for EU MRV. The main difference of the reporting scopes is that MRV takes into account the voyages to and from EU ports regardless of the vessel’s flag while IMO DCS takes into account all voyages of the vessel.
In MRV-reporting, consumption at anchorage and at the port are excluded while IMO DCS takes into account those as well. ESL Shipping is responsible for reporting these figures for our own vessels.
It is noteworthy that MRV figures do not take into account the weight of the cargo, which results in poor figures when lightweight cargoes, which fill up the hold, are carried. These cargoes include for example project cargoes, wood pellets and some steel products such as pipes.
Verified emission reports are available for clients on a voyage bases and upon request we can provide emission certificates for voyages operated by our owned or pooled vessels.
Shipping included into EU Emissions Trading System (ETS)
As from 1.1.2024, ships presently reporting emissions under the EU MRV regulation are required to purchase CO2 emission credits. The system includes all intra EU-voyages and 50% of the emissions for voyages, which arrive or depart from EU ports for vessels over 5,000 GT. It means that at this stage all AtoB@C Shipping's vessels are excluded. However, from 2025 these vessels will be covered by EU MRV and Commission will investigate the possibility to include them to in the EU ETS.
ETS is expected to increase energy cost between 30-100% assuming that the emission allowance price is 50-200 EUR per ton of CO2e.
Our clients have access to extranet, where they are able to see detailed information about all their shipments, emissions and estimate an impact when using renewable fuels instead of conventional fossil fuels. If you are our client and you do not yet have access to extranet, speak to your contact at chartering.
Carbon intensity indicator (CII)
CII measures how efficiently a ship transports goods and is given in grams of CO2 emitted per cargo-carrying capacity and nautical mile. Each vessel is given a rating from A to E with all vessels required to reach a C-level. If the rating is lower, the owner is required to present an approved corrective action plan. The rating thresholds will become increasingly stringent towards 2030.
Vessel ratings can be improved by increasing energy efficiency and using low carbon fuels. Currently all our vessels reach a rating of A to C except our supramaxes. For Arkadia and Kumpula we will limit their engine power in order to reach acceptable rating.
CII is based on IMO’s Data Collection System (DCS) data, which means that only vessels over 5,000 GT are included. In practice, this means that the whole European coaster trade including AtoB@C Shipping’s fleet is excluded for the time being.
Energy Efficiency Existing Ship Index (EEXI)
From 2023, all vessels with GT over 400 must fall below certain threshold of CO2-emissions per cargo capacity. EEXI is a theoretical value which measures vessels CO2-emissions per transport work based on vessel’s design parameters (size and service speed) and is similar to Energy Efficiency Design Index (EEDI) for new ships.
Calculated EEXI is then compared to the reference line defined by the International Maritime Organization (IMO) and if the value is below the reference line, the vessel is compliant. For vessels that do not meet the standard level, measures to improve fuel efficiency such as engine output restrictions and additional energy-saving devices are required.
Other alternatives to improve vessel’s EEXI include battery technology, waste heat recovery systems, air lubrication of the hull, wind propulsion and fossil-free fuels. See our Sustainability Report 2020 to learn more about different fuel alternatives.
Fuel EU Maritime
FuelEU Maritime will set a limit for the GHG intensity of energy used on board the ship, expressed in grams of CO2 equivalent per megajoule (gCO2e/MJ). The limit will be tightened gradually over time, starting from 2% in 2025 and reaching 80% in 2050, compared to a 2018 baseline. The regulation will also consider methane and nitrous oxide emissions, which are potent GHGs that are often overlooked in the maritime sector.
To comply with the regulation, ship operators will have to use more low-carbon fuels, such as renewable diesel, biogas, hydrogen, ammonia or electricity from renewable sources. These fuels have a lower life cycle GHG footprint than conventional fossil fuels, such as heavy fuel oil or marine gas oil. However, they also have higher costs and technical challenges, such as availability, compatibility, storage and safety.
The EU hopes that FuelEU Maritime will create a strong market demand for low-carbon fuels and stimulate innovation and investment in the maritime sector. The regulation will also contribute to the EU’s goal of achieving climate neutrality by 2050 and reducing GHG emissions from transport by 90%.
The regulation currently applies to ships above 5,000 gross meaning that our present coaster fleet is currently excluded from the scope of FuelEU Maritime. In addition, pushers are excluded from FuelEU Maritime even though they are included in EU MRV.