Back to Knowledge Center
From 2027 shipping companies surrender allowances for all covered emissions. This article sets out what management needs to see to plan around that cost.

Written for: CFOs and commercial management at RoRo and PCTC carriers

Contents
  1. The rules in brief
  2. Why it is a commercial question
  3. What management needs to see
  4. Who passes it on
  5. Why this capability matters

Since 2024, shipping companies have had to surrender EU emission allowances for ships of 5,000 gross tonnage and above calling at EU ports. The share has been phased in. For most RoRo carriers serving Europe, it is now a voyage cost, not a reporting exercise.

The rules in brief

According to the European Commission:

  • Cargo and passenger ships of 5,000 GT and above are covered from 2024.
  • Allowances cover 40 % of 2024 emissions, 70 % of 2025 emissions and 100 % from 2026 emissions onward, surrendered the following year.
  • Voyages between two EU ports and time at berth in EU ports count in full. Voyages between an EU and a non-EU port count at 50 %.
  • Methane and nitrous oxide are included from 2026, alongside CO2.
  • The shipping company, the owner or the party that has taken over ISM responsibility, surrenders allowances by 30 September each year.

Why it is a commercial question

The cost depends on the route, the ports called, the speed and the fuel. All of these are decided in planning and sales, long before the allowances are surrendered. A rotation change or an extra EU port call changes the cost. So does speed.

What management needs to see

  • An estimate of emissions cost per voyage, based on planned route and speed.
  • How that estimate changes with a rotation or speed decision.
  • How much of the cost is recovered through surcharges or contract clauses.
  • The difference between the estimate and the verified figure, once known.

Who passes it on

Many carriers recover emissions cost through a surcharge. Whether that is possible depends on contract terms, and the surcharge rules need to match the actual cost basis. A surcharge set too low leaves cost with the carrier. One that cannot be explained invites disputes.

This article is general guidance. Rules and allowance prices change, and specialist advice should be taken for compliance decisions.

Why this capability matters

Emissions cost is now a real voyage cost that depends on decisions made in planning and sales. A carrier that can see and price it before departure can recover it fairly and choose routes and speeds with the cost in view, instead of discovering it a year later.

Related reading

Map your emissions cost flow

Write down how emissions cost information reaches planning, pricing and financial follow-up in your company today. Bring the map to a conversation about commercial planning.

Cartagena builds these capabilities together with each customer, as tailored solutions on the Microsoft platform.

Discuss emissions cost