As the European Union’s Emission Trading System (EU ETS) looms on the horizon for the shipping industry in 2024, Bernhard Schulte Shipmanagement (BSM) is setting sail with a comprehensive suite of carbon compliance and management services. With just days remaining until the regulatory tide comes in, BSM aims to assist ship owners and operators in navigating the complexities of EU ETS, ultimately reducing their carbon footprint and associated costs.
All Aboard the Carbon Compliance Ship
Following a year of dedicated development, BSM now presents a robust package of measures and value-added services designed to ensure a smooth transition into the world of EU ETS. Sebastian von Hardenberg,Chief Financial Officer (CFO) of BSM states, “Our approach not only encompasses EU ETS management and compliance services but also seeks to optimise ship and fleet performance to reduce CO2 emissions and financial exposure.” BSM’s CFO, emphasizes their approach, stating, “Our focus extends beyond mere EU ETS management and compliance; we strive to optimize ship and fleet performance, minimizing CO2 emissions and financial exposure.”
Setting Sail with Emission Scheme Administration
BSM’s services encompass the end-to-end process of monitoring, collecting, and reporting required emission data. The company’s integrated solution, validated by authorized third-party verifier DNV, streamlines interactions with EU authorities, facilitating efficient administration of maritime operator holding accounts. Leveraging their in-house IT capabilities, BSM provides real-time oversight of emissions related to EU ETS, ensuring compliance transparency.
Fleet Performance Optimisation and Decarbonisation
Another crucial component is optimizing the fleet performance. Anil Jacob, Head of the Fleet Performance Centre, BSM’s central unit supporting performance optimisation and decarbonisation of the managed ships, says, “We enable our crews onboard, shipowners and charterers to make data driven decisions for most efficient vessel operations that reduces their environmental impact and thus costs and comply with or even go beyond the requirements of international regulations. This has always been the core task of our Fleet Performance Centre but is now becoming even more of a focus for owners and charterers.”
Navigating the Allowance Market
BSM facilitates market access and the acquisition of emission allowances through its extensive network. The company has strategically partnered with selected banks and carbon certificate brokers, aiming to streamline emission allowance deposit and trading services.
As EU ETS extends its reach to cover CO2 emissions from all large ships entering EU ports, BSM is ready to guide shipowners through the evolving regulatory landscape. Von Hardenberg acknowledges the diverse structure of the shipping industry and notes that BSM’s expertise can be tailored to meet varying client needs, from standard emissions reporting obligations to complete EU ETS management.
EU ETS Milestones
In 2024, large ships (5,000 gross tonnage and above) entering EU ports will face the initial wave of EU ETS requirements. Emissions data must be recorded, verified, and reported, with shipping companies required to surrender their first ETS allowances by September 30, 2025. The share of emissions covered by allowances gradually increases each year, reaching 100% for reported emissions in 2027 and beyond.
