Navigating the Seas of Sustainability: A Guide for Ship Owners and Fleet Managers
As the global focus on sustainability intensifies, industries across the board are grappling with the challenge of reducing their carbon footprint. Among them, the shipping industry stands out as a significant contributor to greenhouse gas emissions. With increasing pressure to curb pollution and comply with stringent regulations, ship owners, charterers and commercial fleet managers face a new set of challenges.
In recent years, regulatory frameworks such as the European Union Emissions Trading System have emerged as key drivers of change in the shipping industry. Under the EU ETS, ship owners are not only required to monitor, report, and verify their carbon emissions but also to purchase EU Allowances (EUAs), which grant the right to emit one ton of CO2 equivalent.
For ship owners and fleet managers, navigating the complexities of carbon management can be daunting. Compliance with regulations such as the EU ETS requires meticulous data collection, verification, and reporting. Failure to comply can result in hefty fines and reputational damage.
The EU ETS as key policy tool
The EU ETS operates on a cap-and-trade principle. The EU caps the total amount of greenhouse gases that can be emitted by installations covered by the EU ETS. These installations are primarily power stations, factories, and other energy-intensive industries. Since this year, ships above a certain size have also been classified as emission-intensive installations. Each installation and vessel gets allocated allowances (EUA) which represent the right to emit a certain amount of greenhouse gases (1 EUA = 1 t CO2).
Installations and vessels can buy and sell allowances among themselves and the carbon price provides an economic incentive for installations to reduce their emissions. Installations and vessels are required to surrender enough allowances at the end of each year to cover their emissions. If they are not able to surrender enough allowances, they face penalties.
Over the years, the EU ETS has expanded to cover more sectors and gases. Initially focused on energy-intensive industries, it has gradually included other sectors like aviation with the shipping sector as its newest addition. It will be gradually integrated into the EU ETS by 2026. For 2024, 40 % of verified emissions of vessels must initially be covered by EUAs, in 2025 it will be 70 % and from 2026 100 % of emissions will have to be covered by EUAs.
Why Carbon Management Matters
Beyond regulatory compliance, there are compelling reasons for ship owners to prioritize carbon management. Sustainability has become a key consideration for stakeholders across the board, from regulators and customers to investors and employees. By adopting sustainable practices and reducing their carbon footprint, shipping companies can increase their competitiveness, attract top talent, and build trust with customers and investors.
Smooth Sailing with Swiss Climate
Enter Swiss Climate, a leading provider of carbon management solutions tailored specifically for the shipping industry. With a wealth of expertise in sustainability, regulation, and shipping logistics, Swiss Climate is uniquely positioned to help ship owners and fleet managers in their sustainability journey.
At the heart of Swiss Climate’s offering is the Monitoring, Reporting and Verification Cockpit (MRV Cockpit) - a powerful tool designed to simplify carbon management and streamline regulatory compliance. The MRV Cockpit provides ship owners with a comprehensive set of features, including:
- Data Quality Assurance: Continuous monitoring and improvement of data quality to ensure accuracy and reliability.
- Digital Verification: Streamlined verification process for EU MRV, IMO DCS & UK MRV, reducing administrative burden and ensuring compliance.
- Compliance Support: Assistance with EEDI/EEXI calculations, monitoring plans, and corrective action plans to meet regulatory requirements.
- ETS Consultancy: Expert guidance on setting up ETS management processes and selection of trading partners.
- ETS Trading: Integration with EUA traders, allowing for fully digital trading with established market participants.
In addition to the MRV Cockpit, Swiss Climate offers customized services to help ship owners streamline their procurement and distribution of EUAs. With wallet services, ship owners can avoid the stress of managing EUAs themselves and rely on Swiss Climate's expertise to handle the process seamlessly.
Charting a Sustainable Future
As the maritime industry continues to navigate the waters of sustainability, Swiss Climate stands ready to support ship owners and fleet managers on their journey towards a greener future. With innovative solutions, expert advice, and a commitment to excellence, Swiss Climate is leading the way to a more sustainable shipping industry.
Want to know more about our MRV Cockpit? Let’s get in touch!
back
