EU ETS SHIPPING - HIGHLIGHTS

The shipping industry is included in the EU ETS from 1st January, 2024. Shipping companies are required to purchase and surrender EU Allowances (EUAs) for ships above 5,000 GT calling EU ports. The rules include 100% of emissions for intra-EU voyages and 50% of emissions from voyages starting or ending at an EU port.

Enforcement phase-in:

40% of the verified emissions reported for 2024 70% of the verified emissions reported for 2025 100% of the verified emissions reported for 2026

The rules apply to ships calling EU ports regardless of their flag or country of incorporation of the shipowner. In addition, member states are responsible for administering the scheme for shipping companies incorporated in their jurisdiction. For companies not incorporated in the EU, they will be administered by the member state in which they had the highest number of port calls during the past four years prior to EU ETS enforcement.

EU ETS requirements apply to the company that is the shipowner or any other organization that assumes responsibility for the operation of ships including duties and responsibilities imposed by the ISM code – for example the DOC holder. Emission reporting will follow EU MRV reporting, while shipping companies will report their fleet emissions annually and surrender the required number of EUAs on 30th September the following year.

CARBONEX is assisting shipowners and charterers to comply with their obligations toward the EU ETS. We manage all administrative burdens and provide efficient EUA market access through our in-house web marketplace.