Furetank launches company for trading emission reductions in shipping

The FuelEU Maritime regulation opens new pathways for the shipping industry to dramatically cut greenhouse gas emissions. The Swedish tanker shipping company Furetank is now taking the lead, reducing its own emissions to a fraction through biogas operations and launching a subsidiary that will help more shipping companies trade emission reductions transferable within the new system. The goal is to accelerate the transition to fossil-free shipping.

The regulation, which came into force at the turn of the year, requires commercial vessels within the EU to gradually reduce greenhouse gas emissions, starting with 2 percent during 2025–2029 (compared with 2020 levels). By 2050, emissions must be reduced by 80 percent.

FuelEU Maritime opens several routes to reaching this target: for example, switching to or blending in renewable fuels, or a new option to trade surplus emission reductions that exceed the requirements. Those who fail to meet EU demands will otherwise face heavy penalties. The idea is to make it costly for companies that emit large amounts of greenhouse gases, and profitable for those who transition. In this way, the regulation aims to stimulate the use of renewable fuels.

Immediate transition to biofuel

For Furetank, this is good news and an opportunity to fully leverage its investments in climate-saving technology. Thanks to the company’s Vinga series of in-house designed dual fuel tankers, powered by liquefied methane, the transition to biofuel can be made without delay or technical modification. Now that the incentives and business models are in place for the more expensive biofuel, Furetank has chosen to move far ahead of EU requirements.

“We have long awaited and prepared for this much-anticipated shift. We have secured a contract for large-scale deliveries of mass-balanced biomethane, which will power all of our Vinga vessels trading in the EU throughout 2025. This gives us the opportunity to trade surplus emission reductions — both for ourselves and for others,” said Viktoria Höglund, CEO of the new company called CO2mpliance.

Launching an emissions trading company

Since Furetank has already done the groundwork to establish a framework for the new trading system, CO2mpliance will also handle compliance with the FuelEU regulation on behalf of other shipping companies. Customers will include both operators moving ahead of EU requirements with a surplus to sell, and those unable to reduce emissions from their fleets fast enough and therefore needing to buy.

“Furetank has a tradition of creating its own functions demanded by the market. For example, we have our in-house chartering department, which also serves other shipping companies. Now we are taking the same step into this new market created by the EU. We have the entire chain of expertise required to conduct the transactions and administration, in line with the new regulation and the specific conditions of shipping,” said Viktoria Höglund.

Proactivity over convenience

According to her, the new business is a natural continuation of Furetank’s long-standing strategy of staying ahead of environmental requirements — dating back to the 1980s, when the company ordered double-hulled tanker vessels long before they become mandatory in 1995.

“There is always political uncertainty around regulations. It is convenient to just sit still, keep using conventional fuels, wait and see how the market develops. But we choose to do the opposite: we push for change, invest proactively, and go all the way as soon as we see indications that incentives are coming.”