On Dec 18th, 2022, the Council and the European Parliament reached a provisional political agreement on important legislative proposals of the ‘Fit for 55’ package that will further reduce emissions and address their social impacts.
The agreement reached makes the system more ambitious in order to cut down even further emissions. The specific impact on the maritime sector can se summarized as follow:
EU ETS maritime
The Council and Parliament agreed to include maritime shipping emissions within the scope of the EU ETS. They agreed on a gradual introduction of obligations for shipping companies to surrender allowances: 40% for verified emissions from 2024, 70% for 2025 and 100% for 2026.
If most large vessels were included in the scope of the EU ETS from the start, now big “offshore vessels” of over 5000 gross tonnage and above will be included in the ‘MRV regulation’ on the monitoring, reporting and verification of CO2 emissions from maritime transport regulation from 2025 and in the EU ETS from 2027.
As well “General cargo” vessels and off-shore vessels between 400-5 000 gross tonnage will be included in the MRV regulation from 2025 and their inclusion in EU ETS will be reviewed in 2026.
In addition, will be taken into account geographical specificities, namely for small islands, ice class ships and journeys relating to outermost regions and public service obligations and strengthens measures to combat the risk of evasion in the maritime sector.
Certain member states with a relatively high number of shipping companies will in addition receive 3,5% of the ceiling of the auctioned allowances to be distributed among them.
The co-legislators agreed to include non-CO2 emissions (methane and N2O) in the MRV regulation from 2024 and in the EU ETS from 2026.
https://lnkd.in/djqb6JA4
EU ETS
The EU Emissions Trading System is a carbon market based on a system of cap-and-trade of emission allowances for energy-intensive industries and the power generation sector.
https://lnkd.in/dige3g-s
MRV
Regulation on the monitoring, reporting and verification of carbon dioxide emissions from maritime transport, and amending Directive 2009/16/EC
https://lnkd.in/dPFe29Fr
At UE level, setting up a system for monitoring, reporting and verification (MRV system) of CO2 emissions based on the fuel consumption of ship.