European Green Deal and Its Impact on the Turkish Maritime Sector: The Need for Legal and Economic Harmonization
- Yaz Alibaşoğlu
- Jun 10
- 6 min read
Written by: Attorney Yaz Alibaşoğlu | YAZ LEGAL STUDIO
Global Wave, Local Impact
The European Union's Emissions Trading System ( EU Emissions Trading System ) began covering the maritime transport sector as of January 1, 2024 and is implemented on a flag-independent, route-based basis.
As announced by the Ministry of Trade, shipping companies, like other EU ETS sectors, are now required to actively monitor their emissions and receive and deliver EU allowances (EUAs) for every tonne of greenhouse gas emissions reported. The Ministry announced that in order to minimize the problems in this transition period, the allowance delivery obligations will be phased in between 2025 and 2027. In this context, shipping companies must deliver their first EUAs in 2025, corresponding to 40% of their emissions reported for 2024, by 30 September 2025. As can be seen, the first tangible effects of the system have emerged by 2025, with penalties being imposed and companies’ commercial reputations vulnerable to damage. In shipping, not only performance but also environmental compliance and sustainability strategies provide competitive advantage.
In countries with a high EU weight in foreign trade, such as the Republic of Türkiye, this transformation is not only an environmental obligation; it has become a parameter that directly affects costs, insurance contracts, access to financing and legal responsibilities.
Contracts Are Being Rewritten
A new page is being opened in maritime contracts such as transportation, ship chartering, shipbuilding, shipyard, and port management. Articles such as “environmental liabilities,” “emission cost sharing,” and “green certificate obligation” are now included in contracts that used to only include technical or commercial issues.
If companies operating in the maritime sector do not review these contracts, they will inevitably face risks such as additional costs creating disputes between the parties, compensation obligations due to breach of contract, and unclear compliance responsibility in ship charters:
For example, under the Emissions Trading System (ETS) and Maritime MRV (Monitoring, Reporting and Verification) regulations, the party responsible for meeting the obligations related to emissions of a particular ship may be the Registered Owner (RO) of the ship or the ISM Company designated under the International Safety Management (ISM) Code. The parties should agree clearly on which institution or person will undertake this obligation. However, if no such agreement is reached, the assumed responsibility under the regulations will be that of the Registered Owner. If an ISM Company wishes to undertake the obligations under the ETS and MRV for one or more ships, it must submit to the relevant administrative authority a written authorisation agreement with the Registered Owner (RO) to assume this responsibility. This document should clearly state that the ISM Company assumes legal responsibility for the ships concerned. Otherwise, in the absence of such documentation, the Registered Owner of the ship is deemed directly responsible for the fulfilment of the obligations. However, if these and similar technical details in the implementation of the system are not taken into consideration and care is not taken, companies may find themselves in various disputes.
Company Assignments and Operational Changes on Ships: An Area Prone to Misconception
In the regulations under the Emissions Trading System (EU ETS), the obligations are defined on a shipping company basis, not on a ship basis. Therefore, the entities assigned in the system are not individual ships, but companies that operate ships. Only shipping companies will be included in the allocation lists to be published by the European Commission; there will be no individual classification or monitoring of ships in these lists.
Once a shipping company is assigned to a Member State based on its centre of operations or the majority of its tonnage, this assignment remains valid until the next list update. Operational changes, such as the addition of new ships to the fleet or the transfer of existing ships to another company, do not affect the company's Member State assignment. This system is built on an administratively fixed structure, not a flexible one, to ensure stability and regulatory continuity.
In this context, it is important to remember that mergers, ship transfers or changes in fleet dynamics do not lead to a transfer of responsibilities in the short term. Therefore, it is of great importance for shipping companies to strategically evaluate not only their technical operations but also their administrative position in the EU.
Not Only Shipping Companies, But Also Insurance Companies and Financing Are Included In This Transformation
As of 2025, not only shipping companies but also all stakeholders in the sector — especially insurance companies and financial institutions — have begun to review their environmental compliance policies. This systemic transformation is making “environmental performance” a new financial criterion in the shipping sector.
Insurance Industry: Carbon Footprint is Now a Risk Indicator
P&I clubs and marine insurers have begun to increase risk premiums for ships with high carbon emissions.
High emissions are now classified not only as an environmental but also a financial risk.
The energy efficiency of ships is becoming a determining factor in policy evaluations.
Shipowners with a “green fleet” policy are rewarded with more favorable premium rates and extended coverage.
This change now requires shipowners working with the insurance industry to submit not only technical but also environmental efficiency reports. Environmental violations, such as MRV reporting deficiencies or ETS non-compliance, could also be excluded from some insurance coverage.
Sources of Funding: Access to Capital Becomes Difficult Without Green Compliance
Many banks and international funds in Europe have linked maritime financing to green investment criteria.
Carbon-intensive companies face higher interest rates or limited credit opportunities.
“Sustainable shipping” has become a preferred option in investment evaluations.
In light of these developments, sustainability is no longer just a “reputation issue”; it has become a prerequisite for accessing capital. Financial institutions analyze carbon risk in ship investments just like geopolitical risks and shape their credit policies accordingly.
Recommendations Regarding the Adaptation Process
The inclusion of the EU Emissions Trading System (EU ETS) in maritime transport also brings about a new adaptation process at legal, operational and financial levels for Turkish shipowners and shipping companies.
1. Review Your Contracts: Clearly State Risk Allocation
Lease contracts, such as freight contracts, time charters and bare leases, should clearly stipulate which party will bear the costs of emissions (e.g. carbon allocation obligations, penalty fees or ETS payments).
Uncertainty between parties may form the basis for future disputes.
With provisions similar to the “green clause”, the obligations of the parties on issues such as emission reduction and fuel selection can be clarified.
If such clauses are not included in the old contracts, they can be updated with an additional protocol (addendum).
2. Prepare a Compliance Plan: Measure, Report, Reduce
An adaptation plan should be prepared for each ship that measures its carbon footprint and includes reduction targets. In addition, issues such as seafarer training and technical equipment investments should be included in long-term planning.
3. Update Your Insurance Policy: New Risks, New Coverage
It should be checked whether risks such as environmental violations, carbon trading liabilities, and expenses based on penalties are clearly covered in the policies.
If necessary, it is recommended to switch to additional insurance products such as special environmental guarantees or “carbon liability coverage”.
Contact your insurance broker regularly to learn about innovative coverage models.
4. Get Legal and Operational Advice
The ETS compliance process is not only a technical but also a serious legal risk management process.
Each company needs to develop a specific strategy according to its different operational profile and fleet structure.
Issues such as communication with competent authorities, transparency in audits, and management of criminal sanctions require professional support.
Conclusion: Who Adapts Wins
The green transformation can no longer be postponed. For ship owners, investors, logistics companies and port operators, acting proactively in this process means not only avoiding penalties, but also gaining a competitive advantage in the market. The role of law in this transformation is not only a regulator; it also acts as a guiding compass. With the right contracts, strong risk management and expert guidance, the Turkish maritime sector can turn this wave to its advantage.
SOURCE
European Commission. (2024). FAQ – Maritime transport in EU Emissions Trading System (ETS) . Retrieved from
European Union. (2023). Directive (EU) 2023/959 of the European Parliament and of the Council of 10 May 2023 . Amending Directive 2003/87/EC as regards the EU Emissions Trading System (EU ETS).
IMO (International Maritime Organization). (2020). Fourth IMO Greenhouse Gas Study 2020 .
https://www.imo.org/en/OurWork/Environment/Pages/Fourth-IMO-Greenhouse-Gas-Study-2020.aspx
DNV. (2023). EU ETS – Emissions Trading System .
https://www.dnv.com/maritime/insights/topics/eu-emissions-trading-system/eu-ets-compliance/
Gard P&I Club. (2021). Gard signs Poseidon Principles for Marine Insurance .
https://gard.no/about-gard/company-news/gard-signs-poseidon-principles-for-marine-insurance/
European Commission. (2025). The Commission adopts two new reports on the implementation of EU ETS in maritime transport .
DNV. (2023). Preparing for the EU ETS - next steps .
https://www.dnv.com/news/preparing-for-the-eu-ets-next-steps-250038/
Guard. (2022). The third pillar: a contractual architecture for maritime decarbonisation .
https://gard.no/insights/the-third-pillar-a-contractual-architecture-for-maritime-decarbonisation/
European Commission. (2023). Reducing emissions from the shipping sector .
IMO. (2020). IMO GHG studies .
https://www.imo.org/en/OurWork/Environment/Pages/IMO-GHG-studies.aspx
Republic of Turkey Ministry of Trade. Inclusion of Emissions from Maritime Transport in the EU ETS
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