Ricardo Sustainability, Clean Energy and Environment

Navigating emissions trading: what it means for ports and maritime organisations

11 Mar 2025

As the maritime sector moves towards a low-carbon future, emissions trading schemes (ETS) are emerging as a key regulatory mechanism to drive decarbonisation. Ports and maritime organisations must now navigate an evolving regulatory landscape that introduces both challenges and opportunities. Understanding the requirements, implications, and strategic responses to ETS will be crucial for ensuring compliance, minimising financial risks, and securing long-term sustainability.

Understanding emissions trading and its role in maritime decarbonisation

Emissions trading is a market-based approach that incentivises the reduction of greenhouse gas (GHG) emissions. Under these schemes, organisations required to account for their emissions may need to purchase additional allowances if they exceed pre-determined levels. Over time, these allowances become more expensive due to ETS impacting electricity producers and costs being passed on – further encouragement for industries to transition to lower-carbon operations.

The European Union’s Emissions Trading System (EU ETS) has extended its scope to include shipping from 2024, covering CO₂ emissions from large vessels above 5,000 gross tonnage calling at EU ports. Other jurisdictions, including the UK and China, are also considering similar policies. These frameworks mean that ports, terminal operators, and shipping companies must integrate carbon costs into their business models.

Regulatory and legislative considerations for ports

The inclusion of maritime emissions in emissions trading schemes means that ports and their tenants may need to comply with new reporting and purchasing obligations. Some key legislative requirements include:

Monitoring, Reporting, and Verification (MRV): ports may need to collect and report emissions data from vessels calling at their facilities, aligning with established MRV frameworks to ensure compliance.
Allowance purchasing and trading: ships entering regulated waters must hold sufficient emissions allowances, which can create financial and administrative burdens. Port operators working closely with vessel owners must consider how this affects their service offerings.
Infrastructure upgrades: regulations encourage the adoption of onshore power supply (OPS), alternative fuels, and energy efficiency measures to reduce emissions and associated compliance costs.

Failure to comply with emissions trading regulations can lead to financial penalties and reputational damage, making it essential for maritime stakeholders to take proactive steps in emissions management.

Implications for ports and maritime organisations

The expansion of emissions trading into the maritime sector will have direct and indirect impacts on ports and their operations:

Increased operating costs: vessels will face higher costs due to the need to purchase carbon allowances, potentially leading to higher port charges and fuel costs. This may incentivise operators to optimise port calls and reduce fuel consumption.
Competitive positioning: ports that invest in low-emission infrastructure—such as green bunkering facilities and OPS—may attract more business from vessel operators looking to reduce their carbon costs.
Supply chain adjustments: tenants and logistics providers within ports will need to evaluate their own emissions footprint and identify ways to lower their exposure to trading scheme costs.
Investment in sustainability initiatives: to remain competitive, ports will need to accelerate investments in renewable energy integration, digitalisation, and alternative propulsion solutions.

Minimising risk and prioritising adaptation

To successfully navigate emissions trading schemes, organisations should adopt a strategic, data-driven approach. Key actions include:

Carbon footprint assessment: conducting a full emissions audit to determine exposure under ETS regulations.
Technology adoption: investing in OPS, energy-efficient cargo handling, and low-carbon fuel infrastructure.
Partnerships and collaboration: engaging with industry partners to share best practices and optimise compliance strategies.
Market strategy development: leveraging emissions trading as an opportunity to trade allowances and manage costs efficiently.

The role of expert consultants in emissions trading compliance

Navigating emissions trading schemes can be complex, requiring expertise in regulatory compliance, financial modelling, and sustainability planning. Working with experienced consultants offers ports and maritime organisations several advantages:

Regulatory expertise: understanding the nuances of regional and global emissions trading frameworks and ensuring compliance.
Strategic planning: identifying cost-effective pathways for emissions reduction and operational adaptation.
Financial risk management: developing strategies to optimise carbon trading and avoid unnecessary financial exposure.
Infrastructure guidance: supporting investment decisions in clean energy solutions, digitalisation, and alternative fuels.

Conclusion

Emissions trading schemes mark a significant shift for ports and the wider maritime sector. While they introduce new regulatory and financial complexities, they also create opportunities for forward-thinking organisations to differentiate themselves as sustainability leaders. By proactively engaging with emissions trading strategies and leveraging expert guidance, ports can reduce risk, optimise operations, and contribute to the global decarbonisation effort.

As the regulatory environment evolves, the ability to adapt and innovate will determine the success of maritime organisations in a low-carbon future. Now is the time for ports to assess their readiness, invest in sustainable infrastructure, and strategically position themselves for long-term resilience and competitiveness.