Fuelling the future: the role of seafarers in EU ETS & decarbonisation

Pressure on the shipping industry to decarbonise has been increasing in recent years, with the introduction of a range of rules and regulations from national and international bodies around measuring and reporting emissions.

The International Maritime Organisation has set ambitious targets to reduce shipping emissions by 20 – 30% by 2030 and reach net zero by 2050, accompanying these goals with new methods of tracking and incentivising progress, including the Carbon Intensity Index (CII) and the Energy Efficiency Existing Ship Index (EEXI).

As a result, shipping companies have been increasingly engaging with emissions reduction opportunities and piloting and adopting various solutions – from ship design modifications to alternative fuels.

The extension of the European Union’s Emissions Trading System to the shipping industry in 2024 adds another layer to emissions reduction obligations and pressure, with vessels travelling in European waters now requiring purchased allowances for every tonne of CO2 emitted, incentivising shipping companies to decarbonise.

With this backdrop, it’s important to consider how decarbonisation efforts impact crew members onboard these vessels and understand the role that seafarers can and ultimately will play in emissions reductions. Signol asked experts to weigh in on this timely topic.

Meet the experts:

Steven Mark Jones is CEO of the Sustainable Shipping Initiative. He spent a decade working as a navigation officer in the merchant navy, before working ashore across the maritime industry. He became CEO of the Sustainable Shipping Initiative – a members-led project to promote change in the maritime industry – in 2023. He also founded the Seafarers Happiness Index with the Mission to Seafarers to address the concerns of the crew and to ensure that the voice of those at sea is heard.

Dr Joanna Eugenia Bakouni works in International HR Operations & People Experience at RINA and is an Academic Course Director at Lloyds Maritime Academy. She is an expert in people operations and employee experience in the maritime sector, leading people experience projects in Europe and the UK for ship classification and energy transition consultancy RINA. She is a course director for Lloyds Maritime Academy’s crew manning and crew management courses.

Simon Bennett is Deputy Secretary General at the International Chamber of Shipping. He has had a 30-year career at the International Chamber of Shipping and is responsible for coordinating its work on issues including the development of global regulation for shipping. He is particularly focused on leading industry-wide action on emissions reductions.

Harriet Hunnisett-Johnson is the Head of Maritime at Signol. Before joining Signol to lead its work in the maritime sector, Harriet had a career at sea, sailing to the rank of Chief Officer. She has years of on-shore experience in maritime technology and fuel efficiency, and is passionate about the lives of the crew members onboard vessels across the oceans, engaging with crews to make a greener and safer world.

Here are their insights:

EU ETS will affect all parties in the shipping industry

Steven Mark Jones, CEO, Sustainable Shipping Initiative:

“The European Union Emissions Trading System (EU ETS) has an impact all across the shipping chain. For ship owners, there are of course financial implications, but new costs for someone, mean likely new costs for all – which is the way that shipping has always worked. So we are in that phase of all parties seeking to limit their exposure while recognising the new operational seascape.

“There is also scope for charterers to work more closely with ship owners to optimise routes and reduce emissions. Though of course the reality of events globally can impact this, and as the Red Sea is reconsidered by many owners and charterers then the savings calculations are thrown out of kilter.

“It may seem that charterers and owners have both the lion’s share of exposure and means of impacting change – so others (ship managers and seafarers) are caught up in ensuring positive progress into this new paradigm.

“For managers, there is a need to implement operational changes, such as adopting energy-efficient technologies or optimising vessel maintenance and performance to meet emissions targets. There is also reporting to consider, and documentation related to emissions.

Simon Bennett, Deputy Secretary General, International Chamber of Shipping:

“There is still legal uncertainty about which parties are ultimately responsible for the cost of the allowances and what the price of these allowances to third parties should be (should this be based on the price when allowances are purchased, the price when the fuel is consumed, or the price when the allowances are surrendered).”

The industry must not overlook the role of seafarers

Steven Mark Jones, CEO, Sustainable Shipping Initiative:

“We must always remember the seafarers who actually make trade possible. They are too often the forgotten, yet vital link in the chain. It is well documented, but seafarers have not always been sufficiently engaged in the transitional route to net zero. This has to change.

“As crews are involved in implementing energy-efficient practices and maintaining emissions-related equipment, or dealing with new fuels, there is a real need for additional high-quality supportive training and awareness. Seafarers also need to be asked for their views, insights and expertise. There is a danger that we are cutting out the crew in the debate.”

Seafarers are unsung heroes driving change

Steven Mark Jones, CEO, Sustainable Shipping Initiative:

“Seafarers play a crucial role in reducing ships’ emissions and supporting every scheme all over the world. Without seafarer engagement then decarbonisation plans remain just that.

“There are so many vital touchpoints for seafarers with practical and tangible decarbonisation efforts. From the most practical through to strategic. It is people who make plans a reality.

“These can include energy-efficiency steps, such as delivering optimised speed and routing. Seafarers know the ways in which vessels respond and the parameters of the real-life conditions. They know how to operate vessels at optimal speeds and choose efficient routes to reduce fuel consumption and emissions. Whether impacts of traffic or weather, seafarers are able to deliver the right passage plans and responses to translate the need for emission reductions and efficiency gains into everyday practice.”

Dr. Joanna Eugenia Bakouni, International HR Operations & People Experience, RINA and Course Director, Lloyds Maritime Academy:

“Seafarers are the unsung heroes towards a greener future. Recognising that achieving sustainability is a shared journey, we must acknowledge that our seafarers are the backbone of this transition. They’re not just crew members; they’re the driving force behind reducing ship emissions and championing not only EU ETS but also broader decarbonisation plans.

“Their hands-on experience is invaluable, providing practical insights into the real challenges and solutions in the maritime industry and we ought to give them the chance to be heard. However, it’s not just about their actions – it’s about empowering them with knowledge and resources, and eventually upskilling them. By investing in their training and creating a culture that values their role in environmental efforts, we’re not just reducing emissions; we’re ensuring a sustainable maritime future led by the very individuals who navigate our vessels.

“To succeed in this endeavour, our management approach should be more people-centred, focusing on the individuals who man our vessels. By prioritizing the well-being, upskilling and expertise of our seafarers, we pave the way for a more effective and sustainable maritime industry.”

Seafarer buy-in is critical for emissions reductions

Steven Mark Jones, CEO, Sustainable Shipping Initiative:

“Where seafarers have been asked, felt part of the process and have had their say, then there is likely to be enhanced understanding and willingness [to drive changes needed for decarbonisation]. Alas, where seafarers have just been expected to deliver as a component of change, rather than a catalyst, we find disengagement, disillusion and misunderstanding.

“Seafarers should be brought in to help drive best practices for fuel-efficient navigation, engine operation, and cargo handling. These all contribute to emissions reduction, and without the voice of those actually at sea then all efforts become diminished.

“Promoting environmental awareness among seafarers is vital too. Part of the placemaking approach to fostering the attitudes we need to get the results we want. This is key in allowing us to foster a sense of joint endeavour and shared responsibility for making decarbonisation positive and emissions reduction. It also allows us to celebrate seafarers, to show how we recognise and value their frontline role.

“Seafarers’ active involvement and commitment to sustainable and energy-efficient practices are essential for achieving emission reduction goals and supporting broader decarbonisation initiatives. Continuous training, awareness programs, recognition, support, investment and collaboration with industry stakeholders are vital in empowering seafarers to contribute.”

Harriet Hunnisett-Johnson, Head of Maritime, Signol:

“Seafarers need to constantly adapt and change to the surrounding environment. This can be driven by anything from a weather system to a shift in the geopolitical landscape. Seafarers are experienced with change and this expertise needs to be recognised as a valuable resource. The shipping industry has to listen to the voice of the seafarers and ensure they are positively engaged in driving the huge change needed to increase efficiency and reduce emissions.”

Seafarer training and education are vital

Dr. Joanna Eugenia Bakouni, International HR Operations & People Experience, RINA and Course Director, Lloyds Maritime Academy:

“Seafarers engaging with the complicated details of the EU ETS must recognize that their comprehension goes beyond personal expertise—it is deeply tied to the company culture. Grasping the nuances of the EU ETS is essential for fostering sustainable maritime practices.

“To ensure seafarers are well-informed, it’s imperative to cultivate a company culture that emphasizes continuous education (that incorporates blended learning solutions) and transparent communication. Implementing routine training sessions, disseminating informative materials, and fostering an open dialogue within the organization are key strategies for seafarers to stay informed, and additionally help with the overall discussion of upskilling crews. By embedding a commitment to knowledge-sharing and compliance within the company ethos, seafarers can adeptly navigate the dynamic landscape of environmental regulations, demonstrating a proactive and responsible approach to environmental stewardship at sea.”

Steven Mark Jones, CEO, Sustainable Shipping Initiative:

“Seafarers should receive training on the operation of new technologies, such as energy-efficient engines, propulsion systems, and renewable energy solutions. They need to feel part of the debate and delivery.

“But it’s important that training does not impinge on rest or leave and does not lead to an initial surge in workload. Proper training can be time-consuming and may temporarily impact their regular duties, and that needs to be factored in and considered.

“Beyond training programmes, collaboration with maritime organisations and industry associations to promote awareness campaigns and educational initiatives for seafarers is vital. The Sustainable Shipping Initiative brings together ambitious leaders to deliver a sustainable industry, and seafarer inputs are hugely welcome as part of these efforts.

“By adopting these approaches, shipping companies can empower seafarers with the knowledge and skills needed to navigate the complexities of the EU ETS and actively contribute to sustainable shipping practices.”

There are multiple ways to keep seafarers informed

Steven Mark Jones, CEO, Sustainable Shipping Initiative:

“Seafarers do need to know how compliance may impact daily operations, including fuel management, route optimisation, and emergency responses. So too how it may impact their workload.

“Promoting this awareness takes a commitment to clear communication and disseminating information about regulatory updates, changes in procedures, and relevant industry developments. Treating seafarers as the professionals they are is something that some parts of the industry have occasionally struggled with.

“We must:

• Provide accessible documentation, manuals, and guidelines;
• Ensure that information is available onboard vessels;
• Have crew meetings and workshops to discuss the practical implications;
• Encourage open dialogue and address any questions or concerns;
• Make sure that seafarers can access online resources, including portals or websites, with updated information, FAQs, and educational materials;
• Provide a chance for seafarers to feedback and provide insights and education back into the company and industry.”

Harriet Hunnisett-Johnson, Head of Maritime, Signol:

“The technology is there to help improve connectivity and the flow of information to and from vessels. This needs to be adopted and utilised carefully as it can easily lead to an increase in workload resulting in the crew disengaging.

“The crew are people, not computers with processors able to take in unlimited amounts of information. The ideal is to use technology to take away the administrative burden of the crew and provide data and information in a clear, concise and engaging way that actually helps them to fulfil their role as guardians of the people on board, the environment they sail in and the cargo they carry.”

Sustainable innovation affects seafarers’ daily work

Steven Mark Jones, CEO, Sustainable Shipping Initiative:

“Seafarers come to the fore for both vessel maintenance and onboard technical management. Since new technology for decarbonisation often comes with enhanced maintenance or extra considerations, it is seafarers who can make sure that is delivered and done effectively.

“It is one of the real concerns of the just transition that all too often seafarers have reported feeling left out, ignored or side-lined in the future fuels and efficiency debate. This is a huge misstep for the industry, and training on new technologies is absolutely vital.

“Emissions reduction initiatives may involve the introduction of unfamiliar equipment or processes, requiring new ways of doing things. We need to consider the potential safety impacts of the evolution onboard. Updated emergency response plans to address safety concerns in the event of equipment malfunctions or accidents, especially with new fuels, will be vital.”

Harriet Hunnisett-Johnson, Head of Maritime, Signol:

“There are many fantastic innovative solutions designed to make shipping more sustainable. These all require differing levels of crew education and expertise as well as time to maintain and implement effectively; you can’t just put a giant sail on a vessel and expect the crew to just go about their daily work as if nothing has changed. The crew will need to factor in a huge amount of additional considerations including stability implications, the potential damage caused by operations, the conditions that are safe and practicable to use the sails, the engineering and maintenance involved in powering and keeping them going – to name just a few. This is just one example, and when we think about adding the toxic component of ammonia to an engine room, the list gets much longer and potentially worrying.

“The reality of what we are asking of our crew has to be addressed and they need to be consulted and supported through the process. Looking back, the move from sailing vessels to combustion engines required the formation of a whole new role onboard: the marine engineer. Do we need to look at more new disciplines at sea to support our crew now?”