Shipping EU ETS

Introduction:

As part of its Fit for 55 package, the European Commission proposed to amend the EU Emission Trading System Directive (2003/87.EC) to include emissions from ships. To ensure a smooth transition, a "phase in" period is introduced during which shipping companies would have to surrender allowances for a portion of their verification emissions, gradually rising from 40% in the first year to reach 100% in the third year.

Benefits:

Effortless Compliance: Normec Verifavia's experienced verifiers stay ahead of the curve, ensuring your monitoring plan aligns with the latest EU ETS requirements. This minimizes the risk of non-compliance penalties and delays.
Unbiased Expertise: Receive independent and objective assessments.
Mitigated Risks & Streamlined Operations: Our in-depth verification process is transparent and ensures compliance.
Enhanced Reputation & Transparency: Choosing independent verification demonstrates a strong commitment to environmental responsibility and transparency to stakeholders, enhancing your reputation within the maritime industry.

Additional Information:

The following phase in requirement shall apply starting from the year 2024.

40% of EU MRV-verified emissions reported for 2024 would be subject to surrender requirements.
70% of EU MRV-verified emissions reported for 2025 would be subject to surrender requirements.
100% of EU MRV verified emissions reported for 2026 and each year thereafter.

Regulation (EU) 2023/957, an amendment to Regulation (EU) 2015/757, incorporates updates and changes to include maritime transport activities into the EU Emissions Trading System (EU ETS) and establishes guidelines for the monitoring, reporting, and verification of methane (CH₄) and nitrous oxide (N₂O) emissions along with Carbon dioxide (CO₂) emissions. Hence following GHG (Green House Gases) gases are included in EU ETS.

Application of derogations to EU ETS:

Ice class ships: ships of ice class IA, IA Super, or an equivalent ice class should surrender 5% fewer allowances than the emissions verified each year.
Container transshipment ports within 300 nautical miles: A port is to be identified as a 'neighboring container transshipment port', these ports shall not be considered as ports of call and any immediate port call will be considered as port of origin or termination of an EU MRV & ETS travel.
Shipping companies are not required to submit allowances for emissions from passenger ships, excluding cruise ships, and ferries (Ro-pax ships) during specific journeys between ports of certain islands within a Member State and ports located in the same Member State.
Shipping companies are not obligated to surrender allowances for emissions from voyages between a port located in an outermost region of an EU Member State and a port located in the same EU Member State, and port emissions in these cases.
Shipping companies are not required to submit allowances for emissions released by passenger ships or ferries (Ro-pax ships) operating under transnational public service obligations or contracts established by two EU Member States

Company-level emissions reporting:

Companies are required to submit to the responsible administering authority the aggregated emissions data at the company level, calculated in accordance with the monitoring rules outlined in Annex II to Regulation (EU) 2015/757 for GHG emissions done by ships under its fleet.

Process:

Contact & Submission: Connect with our team and provide your monitoring plan and relevant documentation for the MP (Monitoring Plan) assessment.
Seamless data collection for EU ETS: the data can be collected via an API or standard templates of EU MRV, making the process efficient.
Plan Evaluation & Analysis: Our experts meticulously assess your plan and emissions report for ships and company-level emissions report against EU ETS requirements, regulations, and best practices.
Verification Report & DoC Issuance: Upon successful verification, you receive a Verification report and a Document of Compliance (DoC) for on-board display.

Downloads

FAQs:

What are the key changes in the updated monitoring plan requirements?
The October 2023 Implementing Acts introduce stricter data quality control measures, require specific verification procedures for fuel oil mass flow meters, and mandate detailed documentation of calibration activities.
What happens if my monitoring plan is not compliant?
Non-compliance with EU ETS regulations can result in penalties, including fines and potential exclusion from trading allowances. Therefore, having a verified and compliant monitoring plan is crucial.
To which ships does it apply?
From 2024: cargo and passenger ships of or above 5000 gross tonnage (GT)
From 2027: offshore ships of or above 5000 GT
Who is responsible for complying with EU MRV & EU ETS?
Companies are required to assess and quantify the quantities of each greenhouse gas individually, and then aggregate these amounts into CO₂-equivalents.

In the context of ETS and MRV, the entity responsible for compliance in respect of the emissions of a given ship can be either the shipowner (i.e., the registered owner) or the ISM Company of that ship.

Companies involved in maritime transport activities must account for the types and quantities of fuel consumed during the period when the ship was under their responsibility. The THETIS MRV has been updated to incorporate the new functionalities of possible multiple verifications limited to the period the operator had shipped under its fleet.
What Green House Gases are considered under EU ETS
Release of the greenhouse gases covered by the emissions of

Carbon dioxide (CO₂)
[NEW] emissions released from 2024 onwards, methane (CH₄)
[NEW] emissions released from 2024 onwards, nitrous oxide (N₂O)

Verifavia currently offers EU MRV services under COFRAC 17029 accreditation. An extension for EU ETS services is requested and in progress. Upon successful completion, Verifavia will be authorized for EU ETS service provision. Further updates will be provided.