For shipping companies, the purpose of buying EUAs is usually not market trading or investment, but to obtain sufficient allowances before the regulatory deadline and to surrender them as required.
The core objective of EUA procurement is therefore to ensure that the company can obtain enough allowances that are valid for surrender, within the compliance deadline, at a reasonably controllable cost and through a manageable process.
1. What is an EUA?
EUA stands for EU Allowance. As the European Commission explains, under the EU ETS one allowance gives the holder the right to emit one tonne of CO₂e; regulated entities must monitor and report their emissions every year and surrender enough allowances to cover their annual emissions.
For shipping companies brought into the EU ETS, this means obtaining and surrendering a quantity of EUAs corresponding to the verified emissions in scope at company level.
2. How can EUAs be obtained?
In terms of market channels, EUAs are obtained mainly through primary-market auctions or secondary-market trading.
Primary-market auctions are the mechanism by which allowances are issued. According to the Commission's FAQ, shipping companies may acquire EUAs at auction; the Commission also notes that allowances can be bought at auction in the primary market or bought and sold in the secondary market.
Secondary-market trading refers to purchasing allowances through exchanges, financial institutions, brokers or counterparties with suitable arrangements in place. For many shipping companies whose main purpose is compliance, participating directly in exchange auctions or the futures market can involve a certain barrier to entry, so in practice procurement is usually arranged through a compliant counterparty or a carbon-market service provider.
3. Spot purchases: closer to near-term compliance needs
A spot purchase generally means buying EUAs at the prevailing market price, or at a price agreed between the parties, with delivery of the allowances completed within a short period.
For compliance-driven shipping companies, the advantage of spot procurement is that it is relatively straightforward: once the verified emissions data and allowance requirement are reasonably clear, the company can buy the actual quantity of EUAs needed to meet its upcoming surrender obligation.
For example, after confirming the previous year's EU ETS emissions in scope and the applicable compliance percentage, a company can calculate the number of EUAs required and arrange spot purchases for surrender before 30 September.
It is worth noting that a company which leaves all of its purchasing until just before the surrender deadline may face a combination of pressures: EUA price volatility, counterparty KYC, internal approvals, payment cycles, allowance delivery, Maritime Operator Holding Account (MOHA) access rights and the final surrender transaction itself.
So while spot procurement suits near-term compliance needs, it still calls for advance planning, so that purchasing and surrender are not both squeezed into the final stretch.
4. Futures purchases: primarily for locking in prices and managing risk
Unlike spot, a futures contract is a standardised contract that provides for settlement and delivery at a specified future date under the rules of the contract.
For compliance entities, the role of futures or similar forward arrangements is usually to lock in a price in advance, spread purchases over time and manage exposure to EUA price volatility.
Futures are not, however, suitable for every company to participate in directly. Futures trading typically involves contract maturities, margin requirements, settlement rules, delivery arrangements, account eligibility, market volatility and internal risk-control requirements. For a company without the relevant trading experience and risk-management framework, direct participation in futures or derivatives can introduce additional risk.
For most shipping companies whose main purpose is compliance, futures should therefore be viewed primarily as a price-management tool. Whether to use such arrangements should be decided prudently, taking into account the company's internal risk-control capability, procurement plan, delivery requirements and compliance obligations.
5. Key differences between spot and futures
In terms of purpose, spot is geared more towards meeting near-term surrender obligations, while futures are used more to lock in prices in advance or to manage future price movements.
In terms of delivery timing, spot transactions are normally settled and delivered within a short period, whereas futures provide for settlement and delivery at a future contract expiry or delivery window.
In terms of operational complexity, the spot process is relatively straightforward; futures involve margin, contract maturities, settlement, delivery and risk management, and are considerably more complex to operate.
In terms of suitability, spot suits companies whose primary aim is compliance surrender and whose allowance requirement is relatively well defined; futures or forward arrangements suit companies that already have a clear procurement plan and the corresponding risk-control capability.
Closing remarks
As we move into late August 2026, the deadline for surrendering 70% of allowances against 2025 emissions is approaching. Shipping companies concerned are advised to verify their verified emissions data, EUA requirement, MOHA status and procurement and delivery arrangements as soon as possible, and to leave ample operational time for final surrender before 30 September.
If you have requirements relating to EUA procurement or allowance-demand calculation, you are welcome to get in touch with Tecway Maritime.
References
- European Commission, About the EU ETS
- European Commission, FAQ – Maritime transport in EU Emissions Trading System
- European Maritime Safety Agency, FAQ ETS Regulation
- ICE, EUA Futures Contract Specifications
This article is intended solely to explain the EU ETS compliance procurement process and basic concepts. It does not constitute market trading or investment advice.
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About Tecway Maritime
Tecway Maritime Technology Co., Ltd. was established in 2016 as the Tecway Group's dedicated team for green shipping and maritime consultancy services. The group's parent company, Tecway International Limited, was founded in 1993 and has been active in the global maritime industry for more than three decades.
Tecway Maritime focuses on the core needs of shipping companies in their low-carbon transition, offering UK ETS (UKA), EU ETS (EUA) and FuelEU compliance consultancy, support for green hydrogen shipping projects, FGSS/CHS technical services for dual-fuel vessels, supply and technical support for the Cylinder Liner Diameter Measurement (CLDM) system, and export solutions for Chinese-made marine equipment. Backed by a global network spanning Asia, the Middle East and Europe, Tecway Maritime is committed to delivering reliable, high-quality and sustainable solutions that help shipping companies respond to regulatory change and seize new opportunities in green shipping.