Emissions compliance specialist EmissionLink has called for the proposed expansion of the EU Emissions Trading System (EU ETS) to treat shipping equitably and to channel a greater share of revenues back into maritime decarbonisation.

The European Commission's proposals would extend the EU ETS to offshore activities from 2027 and to certain vessels between 400 and 5,000 gross tonnes (GT) from 2029. While EmissionLink acknowledges that broader coverage may support Europe's climate objectives, the company warns it will also create new commercial, contractual and compliance challenges for operators.

Philippos Ioulianou, Managing Director of EmissionLink, said: "Expanding the EU ETS will not automatically make it more effective. The system must be coherent, proportionate and capable of delivering practical decarbonisation."

A particular concern raised by EmissionLink is the potential for double-counting of emissions costs if the EU ETS operates in parallel with a future IMO carbon-pricing mechanism. Ioulianou stated: "Shipping should not pay twice for the same tonne of emissions. If the EU ETS operates alongside a future IMO carbon-pricing mechanism, there must be an automatic and transparent way to recognise payments and reconcile liabilities."

According to EmissionLink, the inclusion of offshore activities will be especially complex. Offshore vessels may remain at worksites for extended periods, with operational control, fuel consumption and emissions responsibilities divided between owners, charterers, contractors and project developers. The company argues that ETS obligations will increasingly need to be addressed in charterparties and project agreements, covering responsibility for emissions monitoring, purchasing allowances and managing carbon-price exposure.

EmissionLink also flags concerns about the impact of the 2029 expansion on smaller operators, who, according to the company, may face disproportionate compliance demands due to a lack of specialist teams, established data systems and carbon-market expertise.

The company has welcomed proposals to align EU monitoring, reporting and verification requirements more closely with FuelEU Maritime reporting, as well as changes intended to prevent circumvention through transshipment. However, EmissionLink is also calling for at least 50% of ETS revenues generated by shipping to be reinvested in maritime decarbonisation at the national level.

Ioulianou added: "Carbon pricing must be matched by practical investment. A meaningful share of shipping-generated revenues should support sustainable fuels, port infrastructure, vessel retrofits and credible energy-efficiency technologies."

"The credibility of the EU ETS will ultimately depend not on how much money it raises, but on whether it treats shipping fairly and helps the industry reduce emissions," he said.