How BSM uses DNV’s Emissions Connect to master GHG compliance

The maritime industry is steering through an evolving emissions and regulatory landscape. The International Maritime Organization (IMO) has ambitious targets to reach full-scale decarbonization by 2050, while the EU Emissions Trading System (EU ETS) requires shipping companies to account for greenhouse gas emissions by purchasing carbon credits, making accurate emissions data crucial for compliance and cost management.

Navigating EU’s GHG emissions regulations

FuelEU Maritime, effective since January 2025, further mandates reductions in emission intensity for ships operating in the EU, driving the adoption of cleaner fuels and practices.

Shipping companies cannot afford to fall foul of EU ETS and FuelEU Maritime regulations, not only to avoid environmental and reputational damage but also to steer clear of hefty financial penalties for failing to surrender sufficient allowances that cover their emissions. Data is the key to following industry regulations, with accurate and verified emissions data vital for calculating carbon allowances, meeting compliance deadlines and making settlements with customers and charterers.

Why Bernhard Schulte Shipmanagement needed a verified data solution

For Bernhard Schulte Shipmanagement (BSM), a third-party ship management service provider overseeing more than 670 vessels for its customers, it was essential to have a solution that met the regulatory and commercial requirements of the EU ETS and FuelEU Maritime.

Alexander Senteris, Compliance Manager (Emission Trading System) at BSM, said that before the EU ETS came into action on 1 January 2024, they determined they would need to provide their customers with accessible, trusted emissions data for each trip.

“We decided very early on that commercially, it would be of great need to offer verified statements,” says Senteris.

Getting set for the EU ETS

BSM knew that waiting until the last minute to have a verified data reporting system in place was not an option. Instead, they focused on creating a robust framework to manage EU ETS requirements, which centred around understanding exactly how the regulations would affect them and what they needed to do to help their clients. While BSM had an existing internal validation system for reporting from vessels, further development was needed.

“Timely preparation is the key,” says Senteris. “We made sure we understood the business needs that come from the regulation, proactively developed our internal tools and aligned our processes with the needs of the regulation, and found the aspects of our services that we can develop further to provide value to our clients.”

This preparation showed BSM that their internal reporting and validation of vessel data needed to align with EU ETS requirements. They had to ensure their emissions data was verifiable and useful for clients. To achieve this, they integrated their operational reporting system with DNV’s Emissions Connect for reliable data.

Seamless integration of data providers with Emissions Connect

Emissions Connect integrates with data providers to allow users to monitor and manage data streams and generate validated and verified emissions statements.

“We engaged with DNV to develop and test an application programming interface that connects BSM’s systems to Emissions Connect, allowing the applications to send information to each other and ensuring a smooth flow of emissions data,” says Senteris. “This proactive step allowed us to validate and prepare verified statements well ahead of the 2024 deadline.”

BSM see Emissions Connect and the partnership with a trusted independent third party such as DNV as crucial for providing accurate and verified emissions data, which is the necessary “common ground” for discussions and negotiations with clients and stakeholders.

Always having verified data at your fingertips

The need for EU ETS allowances has also increased how regularly verified data statements are required, with commercial settlements being made between ship managers and charterers for each voyage and data insights needed on an ongoing basis, not just at the end of a year.

“It is extremely important to have the option of emission statements on a voyage basis. The easy access of this information is enabled by Emissions Connect,” says Senteris.

“You may have an engagement for two or three months, or even just one month for one voyage. So of course you cannot rely on the annual verification to settle this.”

Continuous data tracking for effective allowance management

Senteris also explains that it is vital to serve continuous verified data throughout the year so you can calculate what allowances need to be purchased at the end of the year while taking into consideration changing prices.

“It is very, very important and relevant when you set your strategy. If you need to purchase something that has a fluctuating price, you need to have a pretty good understanding of what your requirements are at any given date and what your projection for the year is so you can set a strategy in motion.

“It is very important to track all of this throughout the year and have the verified statements, so you know exactly what you need.”

Flexible emissions data sharing and management

As well as having all the necessary data available all the time, BSM also offers flexibility in how emissions data is shared.

Some clients receive the verified statements directly, others access the data that is verified down to voyage and leg level through the Veracity Data Workbench inside Emissions Connect, and some access the relevant data through an application programming interface (API).

At BSM, we see Emissions Connect and the partnership with a trusted independent third party such as DNV as crucial for providing accurate and verified emissions data, which is the necessary “common ground” for discussions and negotiations with clients and stakeholders.

Alexander Senteris Compliance Manager (Emission Trading System) , BSM

Schulte Group has used this experience to enable further emissions verification management and decarbonization in the industry by establishing OceanOpt, an emissions management service company that individual shipowners, charterers and even ship managers can use for their own emissions management solutions.

Using a seamless API-backed data flow, shipowners’ vessel emissions verified by DNV’s Emissions Connect can be effortlessly transferred into OceanOpt’s EU ETS portal, streamlining the allocation and reconciliation of EU Allowances (EUAs) by Veracity Solution Partner Berenberg Bank.

Adapting to FuelEU Maritime with a robust EU ETS framework

By structuring such a thorough process for the EU ETS, BSM can adapt plans for other regulations, such as FuelEU Maritime, which came into effect on 1 January 2025.

With a framework in place, BSM can align their internal reporting processes to ensure they are accurately monitoring the small differences in definitions and requirements between the EU ETS and the FuelEU Maritime regulation.

Building a platform of solutions for decarbonization

BSM is developing what Alexander Senteris calls a “platform of solutions” that provides clients with options and support for their decarbonization path, such as fuel blending, banking or borrowing of allowances, use of alternative fuels, and investments in system and propulsion upgrades.

Emissions Connect will also be the backbone for managing FuelEU Maritime, serving as a centralized hub where clients access detailed insights and verified emissions data as they need it.

BSM’s proactive approach of working with DNV and integrating Emissions Connect into its ship management services is setting up their customers for success in managing the EU ETS and FuelEU Maritime, with accurate and verified emissions data available where and when they need it.

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