Full EU ETS Exposure Turns Engine Performance into Cost Control Tool

by Ship & Bunker News Team
Monday February 23, 2026

Shipowners are placing greater emphasis on engine optimisation to control emissions-related operating costs now that shipping is operating under the 100% phase-in of the EU ETS, according to German engine diagnostics specialist CM Technologies (CMT).

Industry reports indicate that full ETS compliance adds about $320 per tonne of VLSFO consumed on intra-EU voyages, depending on allowance prices and regulated fuel emission factors, CMT said in an email statement on Monday.

While the exact figure varies with carbon markets and exchange rates, the company says the scale of exposure has sharpened operational focus on fuel efficiency and combustion quality.

“Under full ETS exposure, emissions costs are clearly visible at voyage level, which means even modest inefficiencies now have a direct financial impact,” David Fuhlbrügge, joint Managing Director of CMT, said.

According to CMT, incremental losses in combustion efficiency, including retarded ignition timing, uneven cylinder loading and injector degradation, often develop gradually without triggering alarms, yet steadily increase fuel consumption.

Under the ETS framework, each additional tonne of fuel burned directly increases allowance requirements.

From January 1, 2026, vessels trading between EU ports must surrender allowances for the full volume of verified GHG emissions, bringing the transition period that began in 2024 to an end.