Maritime transport’s first year in the EU Emissions Trading System achieved its goals

The obligation cycle for the first year of emissions trading has now been completed, and maritime transport emissions have been reported and emission allowances surrendered appropriately. The total emissions reported by shipping companies administered by Finland amounted to approximately 1 740 850 tonnes of CO₂. This represents about 10.7% of the total carbon dioxide emissions reported in the Union Registry in Finland.

EU Emissions Trading System (ETS) for maritime transport - how does it work in practise?

Since 2024, the EU Emissions Trading System (ETS) has also covered commercial maritime transport — both cargo and passenger ships arriving at or departing from ports within the EU and EEA areas. The system applies to ships of 5,000 gross tonnage or more that carry cargo or passengers for commercial purposes. Currently, the ETS covers carbon dioxide (CO₂) emissions. From 2026 onwards, methane (CH₄) and nitrous oxide (N₂O) emissions will also be included.

The aim of emissions trading is to promote the reduction of EU greenhouse gas emissions in a cost-effective and economically efficient way. Together with the MRV Regulation (Monitoring, Reporting and Verification of emissions from ships), the inclusion of maritime transport in the ETS is one of the EU’s key measures to reduce greenhouse gas emissions from shipping.

Shipping companies pay for their emissions by acquiring emission allowances to cover the emissions generated during a calendar year. Allowances can be purchased through the EU’s common auction platform, from other companies, or through emissions trading markets. The price of allowances is determined by supply and demand. The fewer emissions a company produces, the fewer allowances it needs. The ETS therefore provides an incentive to use low-emission fuels and improve energy efficiency.

The total revenue from emission trading can be assessed after the end of calendar year 2025, as emission allowances are auctioned throughout the year, says Johanna Pakkala, Senior Specialist at the Energy Authority.

Traficom and the Energy Authority are responsible for emissions trading in Finland

In Finland, Traficom acts as the administering authority for shipping companies, and the Energy Authority is responsible for managing the Finnish section of the EU Emissions Trading Registry. The registry stores and transfers emission allowances, records annual emissions of operators, and ensures that the corresponding allowances are surrendered.

The first year of maritime emissions trading has demonstrated that cooperation between authorities, shipping companies, and verifiers is open and effective. Such constructive collaboration is important for implementing regulation efficiently and reliably, notes Elina Kari, Special Advisor at the Finnish Transport and Communications Agency Traficom.