Regulation (EU) 2023/957
The European Union Council and Parliament have agreed on amendments to include shipping in the EU emissions trading system (EU-ETS) from 1 January 2024. It is adopted in Regulation (EU) 2023/957 of the European Parliament and of the Council of 10 May 2023 amending Regulation (EU) 2015/757 in order to provide for the inclusion of maritime transport activities in the EU Emissions Trading System and for the monitoring, reporting and verification of emissions of additional greenhouse gases and emissions from additional ship types.
The greenhouse gases covered by the EU-MRV are:
- From 2018, carbon dioxide (CO2),
- From 2024, carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O).
The greenhouse gases covered by the EU-ETS are:
- From 2024, carbon dioxide (CO2),
- From 2026, carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O).
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.
For the owners
By 1 April 2024, companies shall, for each of their ships falling within the scope of Regulation (EU) 2023/957, submit, to the administering authority responsible, a monitoring plan that has been assessed as being in conformity with this Regulation by the verifier and that reflects the inclusion of CH4 and N2O emissions within the scope of this Regulation.
Notwithstanding to above, for ships falling within the scope of Regulation (EU) 2023/957 for the first time after 1 January 2024, companies shall submit a monitoring plan in conformity with the requirements of this Regulation to the administering authority responsible without undue delay and no later than three months after each ship’s first call in a port under the jurisdiction of an EU Member State.
By 6 June 2025, the administering authorities responsible shall approve the monitoring plans submitted by companies in accordance with the rules laid down in the delegated acts adopted by the Commission. For ships falling within the scope of Directive 2003/87/EC for the first time after 1 January 2024, the administering authority responsible shall approve the submitted monitoring plan within four months of the ship’s first call in a port under the jurisdiction of an EU Member State, in accordance with the rules laid down in the delegated acts adopted by the Commission.
Legislative works to be done
By 1 October 2023, the Commission shall adopt the delegated acts to take into account the inclusion of CH4 and N2O emissions, as well as the inclusion of greenhouse gas emissions from offshore ships, within the scope of Regulation (EU) 2023/957.
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.
Compliance Cycle, for MRV and ETS
