What Shippers Need to Know About the September 2025 EU Emissions Allowance Deadline

The maritime shipping industry is poised for a major transformation with the expansion of the European Union's Emissions Trading System (EU ETS). In 2024, the initial baseline year, 40% of maritime emissions are accounted for, rising to 70% by 2025, with the goal of achieving full coverage by 2026. This presents shippers with a decision: either use allowances or reduce emissions. The first emissions allowances are due September 30, 2025. Given that EU emissions allowances are priced at a premium, procurement and sustainability leaders must precisely calculate emissions baselines and develop effective strategies for emissions reduction. This shift underscores the transportation industry's need for innovative approaches and emphasizes the critical role of strategic planning in achieving sustainability goals. Here's what you need to know—and how we can help.

Understanding EU emissions allowances

EU emissions allowances are part of the EU Emissions Trading System (EU ETS), a strategic cap-and-trade system designed to reduce carbon dioxide emissions by setting a market value for carbon. Every year, a set number of allowances are distributed through auctions or free allocation. The EU is aggressively targeting a reduction in these allowances within the ETS framework, which will likely increase prices as the supply tightens. This highlights the importance of reducing emissions and optimizing supply chains. As costs rise, it becomes increasingly critical for shippers to assess their current emission levels and develop a reduction strategy before submitting their total allowances to the EU.

Looking ahead to 2027, the expansion of EU ETS II will encompass fuel distribution and fuel suppliers for road transport, buildings, and additional industrial sectors. As a result, there will be an increased need for shippers to actively control and reduce their multimodal emissions, ensuring compliance with the new regulations.

Global transportation emissions management

Global shippers are increasingly adopting Breakthrough’s transportation emissions management solution, CleanMile, to reach their sustainability goals. This solution offers an innovative way for shippers to track and reduce their emissions in real time, ultimately reducing the number of EU emissions allowances they must submit. Unlike competitors, CleanMile provides highly detailed insights at the vessel level, calculating emissions based on the speed, vessel type, and fuel burned by segment. This comprehensive view allows procurement leaders to make informed decisions about their transportation networks.

Beyond emissions tracking, the solution supports the optimization of fuel costs, capacity, service, and sustainability across truckload, rail, and marine movements globally. By integrating this advanced approach, organizations can ensure compliance with EU ETS regulations while enhancing their overall sustainability efforts.

The future of maritime shipping with EU ETS

The EU ETS presents both challenges and opportunities for the shipping industry. With potential cost implications and the complexity of the regulations, staying informed and prepared is essential. By proactively addressing the EU emissions allowances, shippers can not only ensure regulatory requirements are met but also gain a competitive edge in the marketplace. Implementing effective emission reduction strategies and leveraging advanced solutions like CleanMile can position shippers to thrive in this evolving regulatory landscape.

To calculate the cost impact per TEU of your maritime shipments, download our Guide to the EU's Emissions Trading System!