Scope 3 Regulatory Pressure Mounts on Ports

A UK Supreme Court ruling has sent shockwaves through the infrastructure world, making downstream emissions, known as Scope 3, legally mandatory in Environmental Impact Assessments (EIAs). For the shipping and ports industry, the implications are immediate and unavoidable. As lawsuits surge, EU regulations tighten and green investors demand full transparency, PortXchange is urging ports to stop delaying and start measuring what matters most.

“Ports don’t operate in a vacuum. They are central to global supply chains and the emissions those chains produce,” said Sjoerd de Jager (pictured, below), Managing Director and Co-Founder of PortXchange. “This ruling confirms what many of us have argued for years, if we want real decarbonisation, Scope 3 can’t be ignored. The industry needs to move from reporting what’s easy to measuring what matters.”

The Supreme Court’s decision in Finch v Surrey County Council Invalidated a fossil fuel permit for failing to assess emissions from the fuel’s end use. That precedent is now fuelling active legal challenges against North Sea oil and gas developments, including Rosebank and Jackdaw, with Greenpeace, Uplift and Friends of the Earth all filing suits. Their position is unequivocal: if emissions are generated, they must be assessed and mitigated. The same principle applies to port expansions and infrastructure development. This legal strategy is gaining momentum, and ports are firmly in scope.

Yet many ports continue to publish ESG reports that overlook the largest source of their emissions: the ships that call, the trucks that queue, and the rail networks on which they depend. This selective reporting is no longer acceptable to courts, regulators, or the public.

Adding urgency, the European Commission is now reviewing key components of its Fit for 55 climate package, with strong indications that ports will be required to track and report vessel emissions at berth as part of the expanded EU ETS (Emission Trading System) and MRV (Monitoring, Reporting, Verification) schemes. For ports that haven’t digitised emissions tracking or haven’t addressed Scope 3 emissions, this won’t just be a legal risk; it will become a commercial one.

“Ports that fail to act now are going to find themselves locked out of the next wave of green growth,” said de Jager. “Scope 3 isn’t just about compliance, it’s about credibility, capital and competitiveness.”

That commercial pressure is already here. Institutional investors and green bond providers are starting to reject infrastructure projects that exclude Scope 3 emissions from their ESG disclosures. To access EU taxonomy-aligned or sustainability-linked finance, ports will be expected to show end-to-end emissions transparency. “Pretending it’s someone else’s footprint won’t fly with lenders anymore,” he added.

Even as this pressure mounts, the UK Government last week announced a £30 million funding package to accelerate maritime decarbonisation, investing in shore power, clean fuels, and digital infrastructure. While PortXchange welcomed the move, de Jager warns that grants and pilots won’t be enough on their own.

“We applaud the investment, but innovation without accountability is a missed opportunity,” he said. “Ports need full visibility into their emissions profile and the ability to act on it. That’s exactly what EmissionInsider delivers.”

PortXchange’s EmissionInsider platform provides real-time, multimodal emissions tracking across ships, trucks, and rail, producing a complete, defensible view of Scope 1, 2, and 3 emissions. With built-in tools for scenario modelling, heatmap detection, and compliance-grade reporting, EmissionInsider is already helping leading ports close the Scope 3 gap before regulators or litigators do it for them.

PortXchange is actively working with ports, terminal operators, and regulators across the UK, Europe and the Americas to overhaul their emissions strategies and align with today’s rapidly changing legal landscape. The company is now offering rapid onboarding and support for port executives preparing for infrastructure permits, investor reporting, or green finance audits. “Ports don’t get to call themselves sustainable while ignoring 80% of their emissions,” said de Jager. “Scope 3 is where the accountability is. It’s where the credibility is. And now it’s where the law is.”

Ports Help in Reducing Shipping Emissions

The International Maritime Organization (IMO) has long been committed to reducing the industry’s carbon footprint, aiming for a minimum 50% reduction in GHG emissions by 2050 through stricter regulations and improved energy efficiency. However, recent discussions at the Green4Sea Forum in Athens have highlighted IMO’s challenges in developing credible plans and policies. Suppose the IMO fails to provide effective solutions. In that case, there is a risk that regional and national authorities will take unilateral actions to regulate emissions, potentially fragmenting the global shipping industry’s operations.

In the quest to reduce the shipping industry’s greenhouse gas (GHG) emissions, it has become increasingly evident that slow-steaming, a commonly employed strategy, may not be the ultimate solution everyone thought. Recent studies by Simpson Spence & Young and Clarksons have cast doubt on the effectiveness of slow-steaming, a widely employed strategy. These studies suggest that the benefits of slow steaming may have been overestimated due to unrealistic assumptions about fuel consumption and ship speed. Real-world evidence indicates that the relationship between ship speed and fuel consumption is more nuanced than previously believed, challenging the assumptions underlying the International Maritime Organization’s (IMO) Carbon Intensity Indicator (CII) regulation. This calls for a re-evaluation of strategies.

Instead, a greater focus on the role of ports in achieving emission reduction goals is beginning to be recognized and their role in helping shipping lines achieve emission reduction targets. Acknowledging ports as key partners in the fight against emissions highlights the need for a comprehensive approach to environmental sustainability in the maritime sector.

This recognition highlights the need for a comprehensive approach to environmental sustainability in the maritime sector, with ports serving as vital partners in the fight against emissions. So as the industry navigates these complexities, there is an urgent call for holistic approaches encompassing the entire logistics chain, with ports playing a pivotal role in achieving emission reduction targets.

The maritime sector is also increasingly turning to data-driven decision-making and digital solutions to address these challenges and accelerate the industry’s adaptation to a changing world. One notable example that brings these two ways of thinking together is the Port of Rotterdam, which has embarked on a sustainability journey to minimize its environmental impact. However, obtaining accurate real-time data on transport emissions proved to be a significant hurdle for the port, hampering the implementation of targeted improvement strategies.

To overcome this challenge, the Port of Rotterdam employed PortXchange Synchronizer developed by PortXchange, a spinoff of the Port of Rotterdam, a digital solution designed to align all stakeholders in a port call, reduce emissions and facilitate just-in-time arrivals. In addition to the implementation of PortXchange Synchronizer, the Port of Rotterdam launched PortXchange EmissionInsider, a solution to monitor and analyze transport-related emissions. This solution enabled the port to gain unprecedented visibility into its transport emissions, standardize reporting and identify areas with the greatest potential for decarbonization. By leveraging AI algorithms and data triangulation, the platform provided comprehensive emissions profiles for each ship within the port’s jurisdiction, enabling data-driven decision-making to support emission reduction strategies.

Through the implementation of PortXchange Synchronizer, the port achieved a 20% reduction in CO2 emissions from shipping operations and a 15% decrease in NOx emissions. Collaboration with shipping companies was pivotal in promoting greener practices and driving sustainability initiatives forward.

The maritime industry is at a critical juncture where embracing digitalization, data-driven decision-making, and collaboration between ports and shipping lines are vital. By leveraging innovative technologies and taking a comprehensive approach to emissions reduction, the industry can pave the way for a greener and more sustainable future.

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