Offshore lobby group urges EU to pause ETS rules

A coalition of eight European maritime organisations has called on the EU to overhaul emissions reporting rules for offshore vessels following Maritime Journal’s report last week that IMCA was preparing to push for the change.

From 1 January 2027, offshore vessels above 5,000 gross tonnes will be brought into the EU Emissions Trading System (ETS), requiring operators to monitor emissions and buy ETS allowances for qualifying emissions.

Industry groups argue the current reporting rules are designed for merchant shipping, not offshore operations such as wind farm installation, dredging, geotechnical surveys and subsea construction, and those likely to be affected are precisely those engaged in offshore wind activities.

In an open letter signed by eight signatories including the International Marine Contractors Association (IMCA) and European Dredging Association (EUDA), the parties say the rules, due to come in force on 1 January 2027, ‘impose significant financial obligations, distort competition and create opportunities for circumvention’ and are based on an MRV reporting framework that was not designed for offshore operations ‘and is widely recognised as not fit for purpose’.

“The offshore sector supports Europe’s energy security, climate ambitions and industrial competitiveness,” says the letter, which is addressed to members of the European Parliament and EU member states. “Yet the current ETS framework risks undermining these objectives by creating distortions and opportunities for circumvention.

“Unlike conventional shipping, offshore vessels do not primarily transport cargo or passengers between ports. They perform specialised, project-based activities such as installation, construction, maintenance, dredging and inspection at offshore worksites. Applying traditional concepts such as cargo, transport work and voyage based reporting therefore does not reflect their operational reality.”

The letter makes three specific demands on the EU:

• Ensure a level playing field by closing loopholes that could incentivise operators to mobilise vessels from non-EU ports – which don’t levy penalties
• Create clear definitions for offshore activities as opposed to transport-based activities
• Postpone ETS compliance obligations for offshore vessels above 5,000GT until the revised MRV framework has been implemented and tested.

“The offshore sector is not asking for exemption from carbon pricing,” the letter says. “We are asking for a framework that reflects the operational realities of offshore activities and avoids unintended consequences.”

The organisations warn that unless changes are made, the regulations could encourage operators to shift activity outside the EU, resulting in carbon leakage and a weakening of Europe’s offshore maritime capability.

The eight signatories are IMCA; EUDA; the Belgian Shipowners’ Association (KBRV); Royal Association of Netherlands’ Shipowners (KVNR); Norwegian Shipowners’ Association; Armateurs de France; Danish Shipping; and the Swedish Shipowners’ Association.