EmissionLink warns shipowners of financial risks from delayed EU allowance transfers

EmissionLink has warned that shipowners and operators face increasing financial, commercial, and compliance risks due to the industry habit of delaying EU Allowance (EUA) transfers until the September deadline.

As the EU Emissions Trading System (ETS) phase-in accelerates, the scope of covered emissions is rising from 40% in 2024 to 70% in 2025 and 100% in 2026. Philippos Ioulianou, Managing Director of EmissionLink, noted that current practices between owners, charterers, and managers can leave the party responsible for compliance exposed if allowances are not transferred in time.

Under many charter parties, including those with BIMCO provisions, charterers may delay transfers because contracts permit it, while owners may hesitate to purchase allowances because the charterer is contractually liable. This mismatch creates avoidable market risk, as the company responsible for compliance remains accountable to regulators regardless of contractual disputes. EmissionLink recommends that verified emissions reports be treated as early financial risk indicators to manage this exposure.