EmissionLink Calls for EU ETS Revenues to Fund Maritime Carbon Capture

Maritime emissions specialist EmissionLink has called for a specific share of revenues from the European Union Emissions Trading System (EU ETS) to be allocated to funding onboard carbon capture trials on ships and the port infrastructure needed to support them. The company warned that, without this targeted financial backing, the technology risks failing to become commercially viable for the shipping industry.

Philippos Ioulianou, Managing Director of EmissionLink, argued that Europe has an opportunity to accelerate the development of maritime carbon capture by channelling emissions market revenues into large-scale demonstrations that confirm whether the technology can deliver verified emissions reductions at an economically sustainable cost. According to Ioulianou, developing safety guidelines is an important step, but regulation alone will not be enough to convince shipowners to invest in carbon capture, who need a credible business case backed by verified emissions savings, viable carbon disposal arrangements and clarity on the financial benefits.

EmissionLink proposes investing in demonstration projects that assess every stage of the capture process, from onboard collection and storage through to offloading, transport and the permanent storage or approved use of CO2, with clear performance criteria and independently verifiable emissions data. The company notes that vessels operating on fixed, predictable routes offer the most promising applications in an initial stage, as they allow carbon storage capacity to be planned and offloading arrangements to be established at designated ports, while vessels on irregular routes or spot charters face considerably greater logistical challenges due to the lack of facilities for receiving and transporting the captured carbon.

Ioulianou stressed that installing carbon capture equipment creates responsibilities that go beyond the initial investment, as shipowners must consider the operational impact, the demands placed on crews and who bears the additional costs, issues that need to be resolved before the technology can be confidently adopted. He also warned that shipowners should not assume that carbon capture benefits recognised under the EU ETS will automatically grant equivalent compliance advantages under FuelEU Maritime, which regulates the greenhouse gas intensity of energy used onboard rather than absolute emissions.

The call comes as the International Maritime Organization advances the development of interim safety guidelines for onboard carbon capture and storage systems. EmissionLink believes this period should be used to progress in parallel with commercial trials, emissions verification procedures and port infrastructure.