EmissionLink managing director Philippos Ioulianou has called for fairer treatment of shipping under the proposed expansion of the EU Emissions Trading System (EU ETS), warning against double charging and urging governments to reinvest more of the revenue in maritime decarbonisation.

Under the European Commission’s proposals, the system would cover offshore activities from 2027, before expanding to certain vessels of between 400 and 5,000 gross tonnes from 2029.

While the broader scope could support Europe’s climate objectives, Ioulianou said, “Expanding the EU ETS will not automatically make it more effective. The system must be coherent, proportionate and capable of delivering practical decarbonisation.”

In particular, concerns have been raised about the possibility of shipping companies facing overlapping liabilities if the European system eventually operates alongside a carbon-pricing mechanism introduced by the International Maritime Organisation (IMO).

Addressing that risk, Ioulianou added, “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.”

Meanwhile, the inclusion of offshore activities is expected to create additional complications, as vessels may remain at worksites for extended periods and responsibility for their operations, fuel consumption and emissions can be divided between owners, charterers, contractors and project developers.

Consequently, responsibility for emissions monitoring, purchasing allowances and managing carbon-price exposure will increasingly need to be clearly defined in charterparties and project agreements.

At the same time, smaller operators entering the system from 2029 could face disproportionate compliance demands, as many lack the specialist teams, established data systems and carbon-market experience available to larger shipping companies.

Nevertheless, EmissionLink welcomed proposals to align EU Monitoring, Reporting and Verification requirements more closely with FuelEU Maritime reporting. It also supported measures intended to prevent companies from circumventing their obligations through transhipment.

However, the company stressed that carbon pricing alone would not be sufficient and must be accompanied by investment capable of helping the industry reduce its emissions in practice.

Ioulianou said, “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.”

EmissionLink is therefore calling for at least 50 per cent of the EU ETS revenue generated by shipping to be reinvested in maritime decarbonisation at national level.

“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”, Ioulianou concluded.