Ocean Network Express finalizes European Union Allowances (EUA) Transaction

Ocean Network Express (ONE) has announced its inaugural European Union Allowances (EUA) transaction with BNP Paribas.

Commencing January 1st, 2024, under the regulations of the EU Emissions Trading System (ETS), the maritime transport industry has been included and shipping companies are mandated to monitor, report, and verify their greenhouse gas (GHG) emissions annually and this data will be utilized to determine the EUA that they need to surrender within a compliance period. Non-compliance with these regulations will result in penalties and denial of entry to EU/EEA member states.

In preparation for the immediate EU ETS compliance, ONE has enhanced its internal systems to accurately reflect CO2 emissions data. The company has also initiated a trading account on the Union Registry to hold and transfer EUA according to the procedures. Through this proactive approach, ONE was able to secure its inaugural purchase of EUA from BNP Paribas on February 8th, 2024. The acquired EUA will be subsequently transferred to respective vessel owners in compliance with the agreements as well as the EU ETS regulations, which will ultimately enable the vessel owners to meet their surrender obligations to the EU by September 30th, 2025.

“The EU ETS is a cornerstone of EU’s policy to combat climate change and its key tool for reducing greenhouse gas emissions. This EUA deal with ONE is important for Asian carriers, demonstrating proactive readiness for EU ETS compliance,” stated BNP Paribas Singapore.

ONE remains committed to ongoing preparations for EU ETS compliance, aligning with the compliance process for surrendering EUA.