Changes to the existing ETS and MRV applying from 1 January 2024

On 5 June 2023, the revisions of the EU emissions trading system (‘ETS’) Directive by Directive (EU) 2023/958, Directive (EU) 2023/959 and the Regulation on Monitoring, Reporting and Verification (‘MRV’) for maritime transport emissions by Regulation (EU) 2023/957 entered into force. Member States were due to transpose the above-mentioned Directives by 31 December 2023 regarding the changes to the existing ETS. These changes apply from 1 January 2024.

ETS extension to maritime: first surrender deadline in September 2025

Because the maritime sector needs to contribute to the EU emission reduction target in line with the need for urgent climate action, the ETS was extended to emissions from shipping as from 1 January 2024, building on the existing maritime MRV system.

Maritime transport activities are already covered by the 2015 EU MRV maritime Regulation. According to Article 11a of that Regulation, “From 2025, companies shall submit to the administering authority responsible by 31 March of each year the aggregated emissions data at company level that cover the emissions in the reporting period of the previous year to be reported under Directive 2003/87/EC in relation to maritime transport activities”.

Consistent and timely implementation of ETS provisions by all Member States is important for the correct functioning of the system and the achievement of our legal obligation of at least 55% emission reductions by 2030.

The first surrendering deadline in respect of 40% of emissions for shipping companies falls due in September 2025 in all Member States, in respect of emissions reported as taking place from 1 January 2024 to 31 December 2024.

In addition, please note that in line with Delegated Regulation (EU) 2023/2849, if shipping companies do not report emissions for the whole year in compliance with the EU MRV maritime Regulation, administering authorities are responsible for making conservative estimates instead.

For further information, you may consult our Frequently Asked Questions on MRV and ETS maritime.

Surrender deadline for all sectors

Directive (EU) 2023/959 adjusted the compliance calendar of the EU ETS. In particular, the deadline to surrender allowances was moved from 30 April to 30 September. This change applies for the first time in 2024, meaning that the surrender deadline this year is 30 September in all Member States. Therefore, in 2024 and thereafter, operators should be held liable for the payment of an excess emissions penalty only if they fail to comply with the new surrender deadline of 30 September.