Navigating the evolving EU ETS legislation
The EU ETS remains the most developed framework for the maritime sector. Since 1 January 2025, the European Commission has implemented its latest update to Regulation (EU) 2015/757 of the European Parliament and of the Council, regarding rules for the monitoring greenhouse gas emissions from offshore ships and the zero-rating of sustainable fuels.
Offshore ships not below 400 gross tonnes (GT) now need to comply with the scope of the Regulation, with regards to greenhouse gas emissions – which is a sizable change from the previous threshold of 5,000 GT. In addition, ship operators will need to complete and supply a feasibility report by 31 December 2026.
What does it mean to the dredging sector?
The key impact is that offshore vessels – including dredgers (ad) and hopper dredgers (ae), as mentioned in Annex I of the Regulation – must record and provide documentation, such as statutory certifications, monitoring plans, annual emission reports, verification reports and improvement reports confirming their design or certification, for all offshore operations. This change means that emissions during voyages to and from EU ports, as well as operations within EU ports, will need to be recorded and monitored to comply.
The zero-rating for using sustainable fuels, such as Renewable Fuels of Non-Biological Origin (RFNBOs), Recycled Carbon Fuels (RCFs) and Synthetic low-carbon fuels, will also apply to these vessels, allowing operators to offset carbon emissions against their sustainable activities.
How will the change impact dredging operators?
With this change, operators must now comply with more stringent regulations for dredging activities in EU waters, mandated for voyages and port operations. The aim here is to reduce the environmental impact of dredging operations, with penalties for those who don’t comply.
In order to develop operations effectively to be compliant, as an industry we must consider:
- Cost effective compliance
Organisations and operators need to implement accurate monitoring and reporting systems, which should have been in place since 1 January 2025 to avoid fines. The cost of the transition will likely increase OPEX as new processes are implemented, and it is expected to have a wider impact on CAPEX investment in some fleets, particularly as less sustainable vessels may need to be decommissioned or altered to ensure they are compliant.
The changes will create an immediate stress point for dredging operators as introducing and changing current processes and tools will impact the operational costs, and it will also have a knock-on effect on resources internally, with the potential to also impact the operational capacity for staff.
There are alternatives available on the market which have been developed to make reductions and efficiencies, in areas such as CAPEX, OPEX and emissions. New dredging innovations, such as our Tiamat, offer a practical, scalable solution for port authorities and shipping operators looking to navigate the compliance challenges, while maintaining operational capacity.
Tiamat avoids the substantial mobilisation and demobilisation costs typically associated with large-scale operations, thanks to its ability to be deployed from a standard workboat, its functionality to redistribute natural waste into the tidal system removing the need to visit offshore disposal sites and its modular design which can be transported by land or sea in a freight container. Its efficiency makes it a highly attractive option for ports seeking a cost-effective environmental solution, and case studies have proven it can reduce operational costs to around £1 per cubic metre when compared to £2-3 per cubic metre for a TSHD campaign. You can find out more here (link to research page).
- Sustainable fuels
Investing in RFNBOs or other sustainable fuel technologies is no longer optional and will give the user a competitive advantage. The zero-rating benefit of these fuels allows dredging companies to demonstrate environmental responsibility, while reducing emissions-related costs.
- Reducing GHG emissions
Under the EU ETS legislation, it is important to reduce emissions to comply with mandatory caps and avoid the associated financial penalties, as well as preserving our planet for centuries to come. This means finding and developing innovative solutions with low-carbon technologies to protect our valuable marine ecosystems, which will become essential for the future.
Tiamat’s hydrodynamic dredging capabilities significantly reduce GHG emissions by up to 90% on a like-for-like basis compared to traditional dredging methods. Tiamat therefore stands out in helping ports and operators meet regulatory requirements.
- Operational flexibility
Inevitably, the new legislation imposes a huge pressure upon the dredging sector, with a short window of time to define new reporting measures and manage the changes expected on CAPEX and OPEX budgets. In addition to the increased financial impact, this change is likely to impact the operating capacity as operational staff engage in additional administration processes and older plant may need mechanical adaption or removal from the fleet.
Tiamat’s ability to deploy from workboats which are below the EU ETS limits, provides a versatile option for ports and operators looking to quickly adapt to the increased pressure while aiming to decarbonise without triggering additional compliance obligations. Its modular design also allows it to be shipped globally via standard containers, offering unparalleled flexibility.
- Implementing new strategies
The legislation update encourages dredging companies to adopt innovative strategies, such as a navigable mud management. By improving sediment surveying techniques, companies can accurately determine when compacted sediments reach depths that impede navigation, ensuring dredging occurs only when necessary. This approach minimises operational costs by reducing unnecessary dredging activities and fuel consumption, whilst also lowering emissions.
Further revisions are expected for 2025, to evaluate its overlap with IMO policies and expand its scope.
As the legislative frameworks of the EU, UK and IMO continue to evolve, the maritime industry must prepare for increasing scrutiny of emissions and operational practices. Tiamat provides a robust, innovative solution to help ports and shipping operators navigate these challenges. By reducing GHG emissions, offering cost effective deployment and operating flexibly across global markets, Tiamat not only supports compliance but also drives meaningful environmental progress.
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