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SAFETY4SEA

EU ETS: Six key takeaways for operators

by The Editorial Team
April 24, 2023
in Regulation
eu

Credit: Shutterstock

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ABS released six takeaways to inform operators of amendments made to Directive 2003/87/EC to include maritime transport in the European Union’s Emissions Trading System (EU ETS).

As ABS (American Bureau of Shipping) notes, starting from 2025, shipping companies will have to surrender sufficient EU emission allowances (EUAs) based on EU monitoring, reporting and verification (MRV) data of the previous year. What are some of the key takeaways that owners and operators need to be aware of?

  • The party responsible for the operation of the ship under the ISM Code is liable for CO2 emissions, this is the same entity responsible for compliance with Regulation (EU) 2015/757 (EU MRV)
  • The geographical scope of the EU ETS expansion includes vessels arriving at and departing from EU ports
  • There are two principles, setting a ceiling on the yearly maximum amount of GHG emissions and the trading of EU emission allowances
  • Shipping will be phased into the EU ETS from 2024, with more comprehensive inclusion by 2026. 2024 – 40%, 2025 – 70% and 2026 – 100% of verified emissions
  • Shipping companies that participate in EU ETS can emit tonnes of CO2 up to the amount of their allowances, exceeding this limit induces a remedial penalty
  • By April 1, 2024, shipping companies should submit a monitoring plan for each of their ships falling under the scope of EU ETS, which should first be assessed for conformity by their verifier
EU ETS: Six key takeaways for operatorsEU ETS: Six key takeaways for operators
EU ETS: Six key takeaways for operatorsEU ETS: Six key takeaways for operators

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