Overview
The EU ETS scheme that came into effect for the shipping industry on January 1, 2024, is the first shipping regulation mandating a payment for carbon emissions. Owners and charterers need to agree on the payment of the emissions in a timely manner, usually seven days after a voyage completion due to charter party agreements.
In addition to EU ETS, FuelEU Maritime that came into force for the shipping industry on January 1, 2025 requires the ISM Company to pay penalties arising from annual GHG intensity compliance balance deficits of the energy used on board. Commercial agreements between the ISM company and the charterer of the vessel may also require the independently validated aggregated Compliance Balance of the vessel to be reported to all parties soon after the completion of each voyage throughout the year for timely resolution of surcharge payments between the parties.
What we offer
LR provides a solution to meet the needs of the owner and charterer payment resolutions with the Voyage Emissions Reporting service for EU ETS and FuelEU available through LR’s Emissions Verifier.
The Voyage Emissions Report assesses the accuracy of the voyage and port emissions data through cross-checking with independent data sources and LR’s high accuracy ship performance models.
Following a successful data accuracy assessment, for EU ETS an emissions report is generated by LR that states the EU Allowances (EUAs) associated with the vessel’s activity. Similarly, for FuelEU an Emissions Report is generated by LR that states the GHG intensity of the activity and the accumulated GHG intensity and aggregated compliance balance from the start of the stated reporting period.
These documents can then be shared with relevant stakeholders to resolve commercial obligations.
What are the benefits
- Seamless data upload: Entrust your voyage data to LR's secure Emissions Verifier digital application, where our systems manage and safeguard your information. Data can be efficiently uploaded from many common VPMS using APIs already available in Emissions Verifier.
- Expert support: The Voyage Emissions Reporting service is provided by a team of LR Naval Architects and Engineers, unlike fully automated services that rely solely on code to catch reporting errors. We take this approach because we know how important accurate reporting is to our clients, and only humans can detect subtle errors and account for all the complexities of the ETS and FuelEU instruments. There is always an LR expert that our clients can contact if they have any questions and can explain the source of any identified data entry errors, avoiding any reporting delays.
- Thorough evaluation: Our expert team uses a range of data analysis techniques and our highly accurate ship performance model to assess reported data with a 5% accuracy. We carefully look over your reported data to ensure it represents the real performance of the vessel, and we can even validate voyage data even when vessels go dark due to AIS transponder issues or deliberate deactivation. LR gives you confidence your Voyage Emissions Report is spot-on and accurate.
- Comprehensive Voyage Emissions Reports: The Voyage Emissions Reports not only validate reported data on a per-voyage basis but also incorporate EUAs linked to the evaluated voyages and port activity, and the aggregated FuelEU compliance balance over a defined reporting period up to the completion of the voyage or port activity. If required, our experts can also provide bespoke reports that cover specific business requirements.
