Implementation of EU ETS for shipping makes progress

This completes a series of other implementing and delegated acts that will allow for a timely inclusion of maritime transport emissions within the EU Emissions Trading System, as of January 2024. These acts follow the revision of the ETS Directive and MRV Maritime Regulation in the context of the Fit for 55 legislative package, which sets the EU on a path to reduce its greenhouse gas emissions by 55% by 2030 (compared to 1990).

During its 26 October meeting, the EU Climate Change Committee – gathering representatives from Member States – gave a favourable opinion to the draft implementing act on the rules concerning the administration of shipping companies by administering authorities proposed by the Commission and subject to public feedback in September 2023.  This act covers aspects related to the information to be provided by the entity responsible for compliance with ETS obligations and rules for the attribution of shipping companies to Member States authorities. The attribution list of shipping companies to Member States will be published by the Commission by 1 February 2024.

This draft act is part of a series of  implementing and delegated acts to be adopted pursuant to the Emissions Trading System (ETS) Directive and to the Monitoring, Reporting and Verification (MRV) Maritime Regulation.

Earlier this month, the Committee also voted in favour of a draft implementing act that lays down the templates for emissions monitoring and reporting by shipping companies.

These two acts are now pending formal adoption by the Commission and publication in the Official Journal.

In late October and following a favourable opinion of the EU Climate Change Committee, the Commission adopted an implementing act that identifies neighbouring container transhipment ports, as part of a measure addressing the risk of evasive port calls and relocation of transhipment activities outside EU ports. Evasive practices will also be closely monitored by the Commission. Where appropriate, the Commission will propose further measures to address this.

Furthermore, three other pieces of the puzzle were adopted by the Commission this month. Three delegated acts spell out detailed rules for the monitoring of greenhouse gas emissions, for the submission of aggregated emissions data at company level, and for verification and accreditation activities.

These delegated acts have now been submitted to the European Parliament and Council for scrutiny. Provided that these institutions do not raise any objections within two months, they will be published in the Official Journal and enter into force by the end of the year.

All the above developments, combined with ongoing outreach activities by the Commission with the support of the European Maritime Safety Agency, will provide regulatory certainty for the shipping sector and ensure a timely and smooth inclusion within the EU ETS.