Is the shipping industry ready for the EU ETS?

Insights from our survey on the shipping industry’s preparedness for the EU ETS

In alignment with the 2015 Paris Agreement and Europe’s ambitious target of achieving climate neutrality by 2050, the race towards carbon-neutral shipping by the same year is well underway. Transitioning towards sustainability is not just a legal obligation anymore; it’s a pivotal step for the shipping industry to thrive in a future shaped by climate consciousness and regulatory adherence. 

In December 2023, we conducted a survey to gauge the preparedness and planning of businesses ahead of the inclusion of the shipping industry in the EU ETS regulations. The results provide valuable insights into the industry’s current state of readiness: 

• More than half (51%) of respondents anticipate a direct impact of the new regulations on their daily operations.

• A significant 62% have already initiated preparations for compliance
• While 20% have completed their preparations for compliance, we expect ongoing efforts to persist as the regulations evolve and their implications become clearer.

The expansion of the EU ETS to encompass the shipping sector is poised to bring about various consequences for businesses, as noted by the survey respondents: 

• Commercial decisions will be significantly swayed by cost considerations, with 55% highlighting this as the primary influence.
• The choice of routes taken by vessels follows closely behind, with 40% identifying it as a key factor. 

The Role of Data in Decision-Making

In this era of climate-conscious decision-making, having access to accurate and timely data is more critical than ever. A noteworthy 56% of respondents express their intention to leverage digital tools for planning, monitoring, and reporting their carbon emissions.

The path to carbon neutrality begins and ends with precise measurement, and this is precisely where Sea’s Carbon Exposure and Carbon Accounting and Monitoring tools come into play. Specifically developed to reduce carbon output at the pre-fixture stage, these solutions offer comprehensive visibility into upcoming voyages, EU ETS cost estimates, CII, and EEOI—all conveniently consolidated within a single dashboard for streamlined reporting. 

As the shipping industry navigates the evolving landscape of climate regulations, proactive measures are essential for success. The findings from our survey underscore the industry’s commitment to sustainability and the increasing reliance on digital tools to navigate the complexities of carbon neutrality. With the right preparation and innovative solutions, businesses can not only meet regulatory requirements but also contribute to a more sustainable and resilient future for the shipping industry.