T&E: EU Shipping emissions climb to record peak despite decarbonization efforts

European shipping emissions surged last year to their ‘highest’ level since official monitoring began back in 2018, fresh data published by the EU’s Transport & Environment (T&E) shows.

According to the EU MRV (monitoring, reporting and verification) system, which measures emissions from ships of 5,000 GT and above calling at European ports, 2024 set a brand-new record with emissions jumping by 13% despite trade volumes remaining flat.

Although the use of renewable energy has increased and, thus, likely played a part in the decline of imports of fossil fuels, they nonetheless remain high. As noted, fossil fuel carriers still account for around 20% of all EU Shipping emissions, with the Port of Rotterdam acting as the largest importer of fossil fuels in Europe by sea.

T&E has also highlighted that the level of transported liquefied natural gas (LNG) has been ballooning since Russia invaded Ukraine, even though data does show a decrease in 2024. On the other hand, emissions from moving crude oil have risen to 2019 highs.

“Transporting fossil fuels around represents a double climate blow. Ending our dependency on fossil fuels would remove a chunk of shipping emissions, but that leaves over 80% of emissions still to be decarbonised. Efficiency and green hydrogen-based fuels will be needed to get to zero,” Agathe Peigney, maritime transport policy officer at T&E, commented.

It is worth noting that the EU has been pushing forward with plans to minimize dependence on fossil fuels and boost investment in clean fuel alternatives, more so since the start of the Russia-Ukraine war.

Just recently, the commission officially adopted the Sustainable Transport Investment Plan (STIP) to increase investments in renewable and low-carbon fuels for the maritime as well as aviation sector(s). One of the key measures of the plan aims to mobilize up to €2.9 billion for alternative energy sources.

Officials from T&E have further underscored that disruptions in the Red Sea, in particular, have pushed vessels (specifically and by the largest number containerships) to re-route onto longer journeys around the Cape of Good Hope, causing them to sail faster to maintain delivery schedules.

In essence, per the MRV data, operational pressures born out of the Red Sea crisis resulted in more emissions per boxship, a segment that was reportedly the main driver of increased pollution, recording a 46% increase.

As informed, this can potentially be explained by an 18% increase in average distance sailed, a 3% average growth in operational speeds, and an increase in the number of units needed to service longer trade routes.

To add to this, shipping emissions—especially in the EU, which is believed to control around 35% of the worldwide fleet—are “very sensitive” to operational speeds as each 1% increase in speed can result in a 3% growth in emissions.

Among the biggest polluters in the maritime transport industry are some of its largest players. Switzerland’s Mediterranean Shipping Company (MSC) remains the most polluting company in the EU, T&E’s report suggested, having been responsible for 15.6 million tonnes of carbon dioxide (CO2).

Beyond the container lines, Italy’s Grimaldi Group was the largest emitter (3.8 Mt), while Carnival had the highest emissions of any cruise company (2.5 Mt).

“Last year’s record pollution shows that even when trade declines, disruption can lead to increased emissions from ships. With the inadequate IMO deal being shelved, the ETS carbon price has never been so crucial,” Peigney remarked.

As disclosed, the Emissions Trading System (ETS) for shipping has been in place for nearly two years. So far, it has proven ‘effective’, with around 99% compliance reported in the first year.

The upcoming review, therefore, could be the ‘perfect chance’ for the EU to maintain its course on maritime climate regulation by ‘bolstering’ and extending the system to make sure all polluters “pay their fair share”, T&E concluded.