Overview
The EU Emissions Trading Scheme (ETS) came into effect for shipping on January 1, 2024. It is the first shipping regulation mandating a payment for carbon emissions. Owners and charterers must agree on payment in a timely manner, usually within seven days after a voyage, under charter party agreements.
Like the EU ETS, the UK ETS is the United Kingdom’s carbon pricing and emissions trading system. It was launched on January 1 2021 after the UK left the EU ETS. The UK ETS requirements came into force for vessels over 5,000 GT calling at UK ports on July 1, 2026.In addition to the EU ETS, FuelEU Maritime came into force on January 1, 2025. Under FuelEU, the vessel's ISM Company is responsible for any penalties if the ship's annually consumed fuel mix exceeds the permitted greenhouse gas (GHG) intensity limits. Charter party agreements may also require the vessel's FuelEU compliance position to be reported after each voyage so that owners and charterers can accurately allocate and settle any FuelEU costs throughout the year.
Simplifying your reporting
LR’s Voyage Emissions Reporting Service (VERS) allows you to resolve EU/UK ETS and FuelEU charter/owner payments accurately, available through LR’s Emissions Verifier.
Once you have a Voyage Emissions Report, you can check on its validation status via a dedicated portal, using the Report Unique Identifier you can find on the report.
The Voyage Emissions Report assesses the accuracy of the voyage and port emissions data, cross-checking with independent data sources and LR’s high-accuracy ship performance models.
After a successful data accuracy assessment, LR generates an EU/UK ETS emissions report showing the EU/UK Allowances (EUAs/UKAs) associated with the vessel's activity.
For FuelEU, LR produces an emissions report showing the GHG intensity of the vessel's activity, together with the cumulative GHG intensity, aggregated compliance balance and associated penalties from the start of the reporting period. These documents can then be shared with relevant stakeholders to resolve commercial obligations.
Designed with you in mind
- Seamless data upload: Securely upload your data to Emissions Verifier using your VPMS using APIs. LR’s systems manage and safeguard your information.
- Expert support: A team of LR Naval Architects and Engineers support VERS, unlike fully automated services that rely solely on code to catch reporting errors. This approach reflects the importance of accuracy, as only humans can detect subtle errors and account for all the complexities of the ETS and FuelEU instruments. LR experts are always on-hand in case you have any questions, to explain the source of any data entry errors, avoiding delays in reporting.
- Thorough evaluation: LR uses advanced data analysis and a highly accurate ship performance model to review reported data. The team checks submissions to make sure they reflect real vessel performance and they are aligned with all the relevant regulatory requirements. This approach means your Voyage Emissions Reports are reliable and aligned to your operations.
- Comprehensive Voyage Emissions Reports: The Voyage Emissions Reports validate reported data per-voyage and factor in EUAs linked to those voyages and port activity. Reports also calculate FuelEU compliance balances across defined reporting periods up to the end of a voyage or port call. LR experts also offer bespoke reports to cover specific business requirements.
If you want to learn more or have questions about your fleet's compliance, please contact us at voyage.report@lr.org.
