The European Union Council and Parliament have reached a provisional deal to include shipping in the EU emissions trading system (EU-ETS)
7 March 2023
Applicable vessels
Upon entry into force, the EU-ETS will apply to ships of 5,000 gross tonnage and above. From 1 January 2025, the EU-MRV will also apply to:
- general cargo ships of 400 gross tonnage and above
- offshore vessels of 400 gross tonnage and above
- Whether these vessels will be included in the EU-ETS down the line will be reviewed by the EU Commission in 2026
Scope of application to maritime transport activities
The allocation of allowances and the application of surrender requirements will apply to voyages as follows:
- 50% of the emissions from ships performing voyages departing from an EU port and arriving at a non-EU port
- 50% of the emissions from ships performing voyages arriving at an EU port from a non-EU port
- 100% emissions from ships performing voyages between EU ports
- 100% of emissions from ships at berth in an EU port
If by 2028, the IMO does not adopt a global market-based measure to reduce greenhouse gas emissions from maritime transport in line with the objectives of the Paris Agreement and at least to a level comparable to the EU-ETS, the EU will consider increasing the 50% requirement for extra-EU voyages.
Phase-in of requirements for maritime transport:
Shipping companies shall be liable to surrender allowances according to the following schedule:
- 40% of verified emissions reported for 2024
- 70% of verified emissions reported for 2025
- 100% of verified emissions reported for 2026 and each year thereafter