How Ship Owners Can Navigate EU ETS in 2025

As the maritime sector continues to face increasing regulatory pressures, one of the most impactful changes in 2025 is the ongoing implementation of the EU Emissions Trading System (EU ETS) for shipping. While many shipowners took initial steps in 2024, the 2025 landscape demands sharper strategies, deeper insights, and better reporting mechanisms.

At Varuna Marine Services B.V., we help shipping companies prepare, comply, and optimize under EU ETS. Here’s what ship owners need to know and how they can navigate this complex regulatory shift effectively.

🚢 What Is the EU ETS for Shipping?

The EU ETS is the European Union’s key tool for reducing greenhouse gas (GHG) emissions. Starting from January 2024, shipping was included in this system, covering CO₂ emissions from large vessels (5,000 GT and above) operating in the EU.

From 2025, the scope expands to include methane (CH₄) and nitrous oxide (N₂O) emissions, making compliance more challenging and data intensive. The system also continues its phase-in approach, with 70% of verified emissions required to be surrendered in 2025, increasing to 100% by 2026.

✅ Key Point: Non-compliance can lead to penalties, loss of market access, and reputational risks.

⚠️ Key Challenges for Ship Owners in 2025

Expanded Emission Scope
Shipowners must now monitor and report not just CO₂, but also CH₄ and N₂O emissions — especially relevant for LNG-fueled ships.
Increased Allowance Costs
Carbon allowance prices are expected to remain volatile in 2025. Strategic planning is essential to minimize financial impact.
Complex Route-Based Accounting
EU ETS applies differently to intra-EU, EU in/outbound, and non-EU voyages, requiring precise voyage-level emission tracking.
Third-Party Chartering Confusion
Deciding who is responsible for surrendering allowances — the shipowner or the commercial operator — remains a grey area and can affect contracts.

✅ How to Navigate EU ETS in 2025: A Ship Owner’s Action Plan

Audit Your Emissions Thoroughly

Use 2024 data to benchmark your emission profile. This includes fuel type, operational efficiency, and voyage details.

Invest in Accurate Monitoring & Reporting

Deploy automated and real-time MRV (Monitoring, Reporting & Verification) tools. Your data needs to be verifiable and auditable.

Build a Carbon Strategy: Consider:

Fuel switching
Operational optimization
Energy-saving devices (ESDs)
Carbon offsetting and allowance trading

Understand Allowance Trading

Get familiar with how EU Allowances (EUAs) are bought, traded, and surrendered. Partner with financial experts or emissions service providers.

Get SEEMP II & III Ready

Ensure your Ship Energy Efficiency Management Plan (SEEMP) aligns with ETS requirements and includes emission reduction actions.

Engage in Contract Reviews

Update your charter party clauses to clarify who pays for EU ETS compliance. Clear contractual terms are essential to avoid disputes.

🌍 Varuna Marine Services B.V. Can Help !

At Varuna Marine Services B.V., we provide:

EU ETS compliance consulting
Emission data analysis
Digital MRV solutions
Allowance planning & advisory
Training and regulatory updates

With a presence in key maritime hubs across Europe and Asia, we bring localized insight and global best practices to support shipowners in navigating the evolving EU ETS regime.

Get in touch to schedule your EU ETS readiness audit.

🧭 Final Thoughts

The road to EU ETS compliance doesn’t have to be complex. With the right partners, tools, and strategy, shipowners can not only meet regulatory demands but also uncover operational efficiencies and cost savings.