Challenge

From 1 January 2024, the EU Emissions Trading Scheme (EU ETS) introduced the first mandatory carbon cost regulation for shipping. FuelEU Maritime, effective from 1 January 2025, adds further penalties based on annual greenhouse gas (GHG) intensity compliance. Commercial arrangements between shipowners, ISM companies and charterers have created the need to resolve payments for these emissions costs swiftly after each voyage, but the transaction needs to be facilitated by an independent and accurate validation service that is fast and 
backed by strong support. 

Solution

Lloyd’s Register (LR) Advisory created the Voyage Emissions Reporting Service (VERS), a digital validation service to help shipping companies settle emissions payments between stakeholders. The service is available through Lloyd’s Register’s Emissions Verifier, a secure, cloud-based platform used for monitoring, reporting and verifying emissions data, and delivering compliance with all current and future regulatory requirements. 

VERS meets the needs of owners and charterers for rapid payment resolution associated with EU ETS and FuelEU at the completion of each voyage. The unique feature of the service is that it is backed by LR Advisory’s regulatory experts that review every transaction report before it is delivered. This process gives stakeholders confidence that the report is exact and ready to be shared throughout their value chain.

Approach taken

VERS assesses the accuracy of the voyage and port emissions data through cross-checking with independent data sources and LR Advisory’s high accuracy ship performance models. Following a successful data accuracy assessment, reports are generated that include EU Allowance (EUA) values and GHG intensity metrics with a validated compliance balance. Expert review ensures quality control beyond automated systems, with bespoke support available throughout the process.

Key activities & outputs

  • Secure API-enabled uploads through LR Advisory’s VERS platform
  • Human-led validation to identify and correct data issues
  • Data validation using crossreferenced sources and LR Advisory performance models
  • Generation of per-voyage and perport stay reports for all emissions 
    instruments.

Key customer benefits

  • Accurate and timely carbon cost reconciliation for EU ETS and FuelEU
  • Seamless data integration and specialist support
  • Confidence in regulatory and contractual reporting compliance
  • Reduced risk of penalties and reporting delays
  • Enhanced transparency with stakeholders.

Project outcome

VERS has also been developed with adaptability in mind, ensuring alignment with upcoming regulations such as UK ETS and IMO Net-Zero requirements. Since launch in early 2024, the service has delivered over 8,000 validated emissions reports to 70 leading shipping companies, supporting over €100 million in carbon 
settlement payments. The service has been praised for its precision, timeliness and specialist-led support, with continuous growth and upcoming expansion to UK ETS and IMO Net-Zero compliance frameworks.

Conclusion

LR Advisory’s Voyage Emissions Reporting Service didn’t just offer another emissions calculator, it provided a high-confidence solution backed by engineering rigour and regulatory expertise. It allows clients to manage carbon-related obligations quickly, transparently and accurately in a fast-changing compliance environment.

Impact on customer's business & operations

The service helps customers meet evolving compliance demands while protecting commercial relationships through credible, expert-backed reporting. It provides a trusted solution to address growing regulatory complexity and offers the assurance needed in timesensitive charter party settlements.

Other applications

This service is applicable to any shipping operator subject to EU ETS, FuelEU Maritime, or upcoming carbon-related schemes, including UK ETS and IMO Net-Zero Frameworks.

Client testimonials

"At Tsakos Group, we understand the critical importance of effective data 
management in meeting compliance with evolving emissions regulations. To 
enhance accuracy and verifiability, we have integrated our internal emissions monitoring systems with the LR Advisory Voyage Emissions Reporting Service. 
This collaboration enables seamless data uploads, continuous expert support, thorough evaluations and comprehensive emissions reporting. Partnering with a trusted, independent verifier like LR Advisory reinforces the integrity of our data and supports transparent communication and meaningful engagement with clients and stakeholders."

Tsakos Shipping & Trading S.A.

"All of us here at Minoa wanted to take a moment to personally thank you for your precision and punctuality in verifying the MRV and FuelEU partial emission reports for our company. Your thoroughness and reliability make a real difference, and your support means a lot. It’s a pleasure working with someone so committed to quality. From all of us here at Minoa."

Minoa Marine Ltd

"This is to advise that according to our experience in using the Voyage Emissions 
Report, we consider that this is a user-friendly programme which enables us to efficiently provide our Charterers with professional emissions reports for our managed vessels."

Blue Line Ship Management S.A.