THE EU's Emissions Trading System (EU ETS) and FuelEU Maritime regulations are poised to significantly impact shipowners, managers, and charterers whose vessels operate within or to and from the European Union, reports Hellenic Shipping News Worldwide.

This intricate framework presents challenges in compliance but also offers avenues for gaining competitive advantages through strategic management, according to a Lloyd's Register (LR).

Since its implementation for maritime activities on January 1, the EU ETS has imposed a spectrum of obligations on stakeholders, necessitating proactive risk mitigation strategies, it said.

This was underscored in a recent LR webinar titled "Optimising Compliance under the EU's New Emissions Regime."

Running parallel to the EU ETS, FuelEU Maritime will take effect January 1. While distinct in operation, these two systems are designed to complement each other.

Energy Transition programme director David Lloyd moderated the webinar, which featured insights from experts such as lead regulatory specialist Jennifer Riley-James, business development manager Tobias Groeger, and LR OneOcean vice president Marius Suteu.

The discussion delved into the challenges and potential opportunities arising from these new regulations, emphasising the need for meticulous management across various levels, from strategic planning and emissions forecasting to fuel management and route optimisation techniques.

Initially targeting cargo and passenger ships exceeding 5,000 gross tons, the EU ETS will extend its coverage to offshore vessels of similar tonnage from 2025.

Moreover, offshore and general cargo ships ranging from 400 to 5,000 gross tons will need to report emissions under the monitoring, reporting and verification (MRV) system, potentially falling under the purview of the ETS in the future.

Offshore vessels exceeding 5,000 gross tons are slated to be included in the ETS scope starting from 2027.