Opinion Piece: Major new challenges for shipping in 2025 make data more important than ever

OPINION PIECE:

Every year, shipping is faced with new requirements to protect the climate and the environment, and 2025 is no exception. Increased EU requirements for documentation on methane and other emissions from ships has come into force from 1 January, and right now several shipping companies are assessing what to do with the new requirements, while others have not yet realised that they are actually obliged to make an extra effort from now on.

The new requirements emphasise that data is more important than ever for shipping. It’s time for shipping companies to realise that keeping track of their emissions is good business. If they ignore the new EU rules, they risk being fined millions of euros. Of course, it’s in everyone’s interest to protect the environment and the climate, and no one can ignore the fact that methane from shipping in particular is a significant source of pollution. Methane is 80 times more harmful than CO2, so it makes sense that from 2025 the EU will require shipping companies to document methane emissions, including from the rapidly growing fleet of gas-fuelled ships.  

From 2026, the screw will be tightened even further, as shipping companies will have to buy allowances corresponding to their emissions. This can be very costly, but it will be even more expensive for shipping companies if they also have to pay fines, and there is a high risk of this if they do not keep track of their emissions. So how do they do it? The answer is data, which is becoming increasingly important for international shipping.

The solutions for collecting data on individual ships are on the market. But are shipping companies ready to document their emissions? The short answer is no. Unfortunately, I have to say that many shipping companies are taking a chance and ignoring the requirements of the authorities. Some of them are even speculating that it is more profitable to pay fines than to reduce their emissions and invest in measurement equipment that can document the emissions from their ships. It’s a view that I find hard to understand when everyone knows that greenhouse gases, for example, are extremely harmful to both the environment and the climate. Some shipping companies are already taking responsibility, but unfortunately, there are also many who don’t seem to fully understand the gravity of the situation.

There is no doubt that shipping companies that take the task seriously and keep track of their data will reap several benefits. Advanced instruments on board ships can measure not only methane emissions but also other greenhouse gases. For example, the equipment can also help crews and shipping companies understand the relationship between greenhouse gas emissions, engine performance and fuel consumption.

Many shipping companies believe that they can simply calculate their greenhouse gas emissions and avoid measuring them. But they are wrong, because the calculations are misleading. At Green Instruments, we participate in tests that show, among other things, that methane emissions at low engine load are twice as high as engine manufacturers claim. Other tests have documented the same. But by running the engines at a higher load, where they achieve better combustion, it is possible to reduce methane emissions. If you can also document – through measurements – that emissions have been reduced, the ship owner can be rewarded in the form of lower emission taxes. In addition, direct measurement is an incentive for the owners, as they cannot otherwise document the results of investments in solutions that reduce emissions.

From where I sit, there is only one way forward: Take responsibility for the emission of dangerous methane and other greenhouse gases! It’s good for the environment and the climate – and for shipping companies’ finances.

For further information, please contact:

René B. Christensen, CEO, Green Instruments, tel: +45 3032 8007 or e-mail: [email protected]