The proposed expansion of the EU Emissions Trading System (EU ETS) must provide fair treatment for shipping and deliver meaningful emissions reductions, according to emissions compliance specialist, EmissionLink.

The European Commission’s proposals would extend the system to offshore activities from 2027 and certain vessels between 400 and 5,000 GT from 2029. While broader coverage may support Europe’s climate objectives, EmissionLink warns that it will also create new commercial, contractual and compliance challenges.

Philippos Ioulianou, Managing Director of EmissionLink, said: “Expanding the EU ETS will not automatically make it more effective. The system must be coherent, proportionate and capable of delivering practical decarbonisation.

“Shipping should not pay twice for the same tonne of emissions. If the EU ETS operates alongside a future IMO carbon-pricing mechanism, there must be an automatic and transparent way to recognise payments and reconcile liabilities.”

The inclusion of offshore activities will be particularly complex. Offshore vessels may remain at worksites for extended periods, with operational control, fuel consumption and emissions responsibilities divided between owners, charterers, contractors and project developers. This means ETS obligations will increasingly need to be addressed in charterparties and project agreements, including responsibility for emissions monitoring, purchasing allowances and managing carbon-price exposure.

Smaller operators entering the system from 2029 may also face disproportionate compliance demands, as many lack the specialist teams, established data systems and carbon-market expertise available to larger shipping companies.

EmissionLink has welcomed proposals to align EU Monitoring, Reporting and Verification requirements more closely with FuelEU Maritime reporting, as well as changes intended to prevent circumvention through transhipment. However, the company is also calling for at least 50% of the ETS revenues generated by shipping to be reinvested in maritime decarbonisation at national level.

Mr Ioulianou added: “Carbon pricing must be matched by practical investment. A meaningful share of shipping-generated revenues should support sustainable fuels, port infrastructure, vessel retrofits and credible energy-efficiency technologies.

“The credibility of the EU ETS will ultimately depend not on how much money it raises, but on whether it treats shipping fairly and helps the industry reduce emissions.”

With an established presence in Greece and Cyprus, EmissionLink combines local market knowledge with specialist emissions expertise to help shipowners, managers and offshore operators turn evolving regulations into practical compliance and commercial strategies.