Ahead of next week’s Offshore Working Group meeting of the European Commission’s European Sustainable Shipping Forum , the Royal Belgian Shipowners’ Association (KBRV) sends a stark warning about the looming aberrations for the offshore shipping sector with next year’s ETS implementation.

The European offshore sector plays a crucial role in Europe’s energy transition. In particular, Belgian companies such as DEME and Jan De Nul are world leaders in offshore wind, dredging, and complex maritime infrastructure projects, in full support of Europe’s climate ambitions.

Yet the sector that is in full support of Europe’s climate ambition is due to be penalised with severe unfair competition with the upcoming implementation of the EU ETS in 2027.

“The key issue is that the foundational Monitoring, Reporting, and Verification (MRV) framework was designed for commercial shipping, not for offshore activities,” stated Celine Audenaerdt, KBRV’s Head of Environmental and Technical Affairs. “The MRV does not clearly define which vessels qualify as ‘offshore’. The ‘port of call’ concept — central to emissions reporting — does not reflect offshore operations.”

The MRV mismatch with offshore’s on-the-ground reality will result in legal uncertainty, operational mismatch, and serious competitive distortions for the sector.

For example, a European offshore company departing from an EU port to install offshore wind turbines in the North Sea falls under EU ETS. However, a non-EU operator carrying out the exact same work in the same location — departing from a non-EU port (e.g. UK) — would not face the same obligations.

“Without targeted adjustments, current rules risk undermining both competitiveness and the energy transition they are meant to support,” added Ms Audenaerdt.

KBRV urges the European Commission and the European Parliament to address the pressing issue. The KBRV will propose some solutions at the meeting, which include:

• Move from vessel-based to activity-based definitions to determine the scope, supported by a negative list of exclusions.
• Introduce a “virtual port of call” based on the location where the offshore work is executed, ensuring equal treatment for all operators in EU waters.
• Implement a temporary “Stop the Clock” of the EU ETS offshore until the regulatory issues are resolved.
• Work towards a global, level playing field via the IMO.