Thursday

03-04-2025 Vol 19

Establishing Support Roles for Emission Regulations Compliance and Implementation

At a recent joint webinar organized by the Institute of Chartered Shipbrokers and the Baltic Exchange, Alastair Stevenson, head of digital analysis at SSY, emphasized the growing importance of decarbonization in shipbroking. He described decarbonization as a critical service that brokers now offer to their clients.

SSY provides advisory services, including tools like an Emissions Trading System (ETS) and FuelEU calculator to help clients manage their exposure to emissions regulations and facilitates European Union Allowances (EUAs) brokerage through partnerships. Stevenson pointed out that brokers are uniquely positioned to assist in navigating the complex regulatory landscape that exists between vessel owners and charterers.

Jacqueline Chao, sustainability director at Wah Kwong Maritime Transport Holdings, shared insights from the owner’s perspective. She detailed the administrative burdens and financial risks tied to the EU ETS, particularly the responsibility of surrendering EUAs, which can be challenging for shipowners, especially those outside Europe.

Establishing Marine Operator Holding Accounts (MOHAs) has proven especially time-consuming, taking her company around nine months. Chao highlighted a need for assistance, particularly for third-party owners unfamiliar with managing their EUAs.

Both panellists noted an industry tendency to adopt a cautious approach to emissions regulations. Chao advised observing market dynamics before committing to strategies, while Stevenson emphasized the varied levels of preparedness among shipowners.

He pointed out that larger clients typically have dedicated compliance teams, while smaller ones often lack the resources to manage regulatory complexities. Furthermore, the discussions explored the varying types of charters and the unpredictability of tramp shipping, which complicate compliance decisions.

Stevenson criticized the one-size-fits-all regulatory approach of the IMO and EU, suggesting it fails to address the fragmented nature of the industry. Both Stevenson and Chao raised concerns about the perceived ineffectiveness of the substantial funds generated by the EU ETS in actually reducing emissions, particularly for non-European companies that contribute to the fund without access to its benefits.

shippingandr

Leave a Reply

Your email address will not be published. Required fields are marked *