Singapore-based shipping company Ocean Network Express (ONE) has finalized its inaugural European Union Allowances (EUA) transaction with French bank BNP Paribas.
The EU Emission Trading System (EU ETS) — a ‘cap and trade’ system to reduce emissions via a carbon market — became compulsory for the maritime transport industry in January 2024. It applies to cargo and passenger ships above 5,000 GT from 2024 and offshore ships above 5,000 GT from 2027.
Shipping companies are mandated to monitor, report, and verify their greenhouse gas (GHG) emissions annually and this data will be utilized to determine the EUA that they need to surrender within a compliance period.
Non-compliance with these regulations will result in penalties and denial of entry to EU/EEA member states.
The order is part of the ONE Green Strategy which has an ambitious target to achieve net-zero GHG emissions, encompassing Scope 2 and 3, by 2050.
To achieve the target, the transition from conventional fuel to alternative fuels is defined as ONE’s key pillar of green initiatives, and it is consistent with operational efficiency, green investment, and alternative fuels.