Maritime decarbonisation: five questions for 2025
Banks and financiers - question three
Fast-paced regulatory, technological and contractual change continues to drive maritime decarbonisation, with numerous fresh challenges emerging day-to-day.
To assist you in navigating these changing times, by focusing on the practical issues likely to impact your business directly, we continue 2025 by illuminating five key maritime decarbonisation question.
This week we ask: the bareboat charterers of ships you finance (and are the registered owners of) say a Maritime Operator Holding Account needs to be opened in your name, what does this mean?
Legal context
The EU Emission Trading Scheme (EU ETS) governs maritime emissions produced by vessels on voyages to, from and within the EU from 1 January 2024. Throughout 2024 'shipping companies' were required to monitor their greenhouse gas emissions. In 2025 'shipping companies' are required to report their 2024 emissions (by 31 March 2025) and surrender (by 30 September 2025) a quantity of EU allowances (EUAs) calculated on the basis of the 2024 emissions reported.
The default position under the EU ETS regime is that the registered owner of the vessel will be the 'shipping company'. For lenders who are registered owners of vessels via SPVs then, absent a transfer of EU ETS compliance obligations to the ISM Code party by way of mandate, the obligation to surrender allowances will fall on the lender.
In practical terms EU ETS matters are likely being handled by bareboat charterers or their managers without input from the registered owner, however, when it comes to the surrender of allowances the input of the lender will be needed. This because a special type of Union Registry account, a Maritime Operator Holding Account (MOHA), is needed to surrender allowances and must be opened in the name of the 'shipping company'.
Why does is matter
Without a MOHA the 'shipping company' cannot surrender EUAs. If the 'shipping company' has not surrendered EUAs by the 30 September 2025 deadline it will be in breach of the EU ETS rules and exposed to statutory penalties.
The EU ETS regime provides that where EUAs are not surrendered in accordance with the EU ETS rules financial penalties will be imposed on 'shipping companies'. Although the bareboat charterparty will typically provide for bareboat charterers to be responsible for losses and penalties incurred in connection with the operation of the vessel, recovery of EU ETS financial penalties from the bareboat charterer may be complicated where the penalty has resulted from the lender's lack of co-operation and non-compliance.
Furthermore, after two years of non-compliance the ships of the 'shipping company' could be subject to expulsion from Member States or detention in a Member State if the flag state. These are sanctions that could significantly impact the commercial viability of a vessel and consequently the repayment capacity of borrowers, so should be of concern to lenders.
What should you do
1 – check whether you are the registered owner of any vessels within scope of the EU ETS regime;
2 – engage with bareboat charterers to understand the steps they are taking to ensure compliance with the EU ETS regime and co-operate with them in order to open MOHAs where needed; and
3 – if you have any queries or concerns, or would like to discuss future transfer of the compliance obligation to another party, consult our maritime decarbonisation experts who can advise and assist you further.
We look forward to supporting you with any queries, providing insight and offering guidance though this time of transition.
