EU ETS for shipping: what a ship owes in allowances
Enter a year's fuel and where it was burned, and see the allowances due under the EU Emissions Trading System and what they cost at the price you choose.
Updated 2026-10-20
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Who is in the EU ETS for shipping
Since 1 January 2024 the EU Emissions Trading System (Directive 2003/87/EC as amended by Directive (EU) 2023/959) covers cargo and passenger ships of 5,000 GT and above calling at EU and EEA ports, whatever their flag. Offshore ships of 5,000 GT and above join in 2027. The shipping company responsible is the ISM Document of Compliance holder, or an owner or manager that has taken on the obligation by mandate, and it surrenders allowances from its Maritime Operator Holding Account (MOHA) in the Union Registry.
Which emissions count
| Voyage or activity | Share of emissions in scope |
|---|---|
| Between two EU/EEA ports | 100% |
| At berth in an EU/EEA port | 100% |
| Into or out of the EU/EEA (one port outside) | 50% |
| Between two ports outside the EU/EEA | 0% |
A call at a container transhipment port within 300 nautical miles of the EU that the Commission lists does not break a voyage. Ships with ice class IA or IA Super, or equivalent, may surrender 5% fewer allowances until the end of 2030.
The phase-in and the deadlines
| Emissions year | Share surrendered | Gases | Surrender deadline |
|---|---|---|---|
| 2024 | 40% | CO₂ | 30 September 2025 |
| 2025 | 70% | CO₂ | 30 September 2026 |
| 2026 onwards | 100% | CO₂, methane (× 28) and nitrous oxide (× 265) | 30 September of the next year |
Each allowance not surrendered on time costs an excess emissions penalty of €100 per tonne, indexed to inflation, and the allowances are still owed.
How the allowances are calculated
From 2026 methane and nitrous oxide count as CO₂-equivalent. For an LNG-fuelled ship the methane slip of the engine type matters: a dual-fuel Otto medium-speed engine slips far more than a dual-fuel Diesel engine.
Who pays under a charter
The company surrenders, but the cost usually follows the commercial operator under the charter party (for example under BIMCO's ETS clause for time charters). CarbonKeel splits the year's allowances by charter dates in the full calculator.
Questions
When must shipping companies surrender EU allowances?
By 30 September of the year after the emissions: 2026 emissions are due by 30 September 2027.
Does the EU ETS cover methane for ships?
Yes, from 2026 emissions: methane counts at 28 and nitrous oxide at 265 times CO₂. This matters most for LNG-fuelled ships with high methane slip.
How much of a voyage counts?
100% of emissions between two EU/EEA ports and at berth, and 50% on voyages into or out of the EU/EEA.
What share of emissions is surrendered?
40% of 2024 emissions, 70% of 2025 and 100% from 2026.
Who has to surrender the allowances?
The shipping company: the ISM Document of Compliance holder, or an owner or manager that has taken on the obligation, from its Maritime Operator Holding Account (MOHA).
EU ETS, FuelEU, CII and UK ETS for each ship, from the public register or your own data, with the reports for owners, charterers and lenders.