Reducing emissions from the shipping sector (2024)

Inclusion of maritime emissions in the EU Emissions Trading System (ETS)

Since January 2024, the EU's Emissions Trading System (EU ETS) has been extended to cover CO₂ emissions from all large ships (of 5 000 gross tonnage and above) entering EU ports, regardless of the flag they fly.

The system covers:

50% of emissions from voyages starting or ending outside of the EU (allowing the third country to decide on appropriate action for the remaining share of emissions);
100% of emissions that occur between two EU ports and when ships are within EU ports.

The EU ETS covers CO₂ (carbon dioxide), CH₄ (methane) and N₂O (nitrous oxide) emissions, but the two latter only as from 2026.

Emissions from maritime transport are included in the overall ETS cap, which defines the maximum amount of greenhouse gases that can be emitted under the system. The cap is reduced over time to ensure that all ETS sectors contribute to the EU’s climate objectives. This will incentivise energy efficiency, low-carbon solutions, and reductions of the price difference between alternative fuels and traditional maritime fuels.

The system builds on the provisions in place for other EU ETS sectors, as well as the recently revised EU Monitoring, Reporting and Verification Regulation for maritime transport (‘MRV Maritime Regulation’).

In practice, shipping companies have to purchase and surrender (use) EU ETS emission allowances for each tonne of reported CO₂ (or CO₂ equivalent) emissions in the scope of the EU ETS system. It is the role of administering authorities of EU Member States to ensure compliance using similar rules as for the other ETS sectors.

Legislative process

The legislation on the inclusion of maritime emissions in the EU ETS has been complemented by several implementing and delegated acts. These spell out detailed rules and allow for a timely inclusion of the emissions from maritime transport within the EU ETS.

Those acts notably cover the following topics:

the administration of shipping companies by Member States;
the submission of aggregated emissions data at shipping company level;
rules for the monitoring of greenhouse gas emissions;
updates of the relevant templates;
verification and accreditation procedures;
identification of neighbouring container transhipment ports;
small islands and transnational routes under public service obligation or contract subject to specific provisions under the ETS Directive.

To prepare these acts, the Commission is assisted by a maritime formation within the existing Expert Group on Climate Change Policy (CCEG), where experts from Member States are represented. In addition, the Commission has consulted the European Sustainable Shipping Forum (ESSF) where industry and civil society are also represented. The acts are also prepared with the support of the European Maritime Safety Agency (EMSA).

In October 2023, theEU Climate Change Committeegave a favourable opinion on three implementing acts. These acts have been adopted by the Commission and published in the Official Journal of the European Union:

Commission Implementing Regulation (EU) 2023/2297 of 26 October 2023 identifying neighbouring container transhipment ports pursuant to Directive 2003/87/EC of the European Parliament and of the Council
Commission Implementing Regulation (EU) 2023/2449 of 6 November 2023 laying down rules for the application of Regulation (EU) 2015/757 of the European Parliament and of the Council as regards templates for monitoring plans, emissions reports, partial emissions reports, documents of compliance, and reports at company level, and repealing Commission Implementing Regulation (EU) 2016/1927
Commission Implementing Regulation (EU) 2023/2599 of 22 November 2023 laying down rules for the application of Directive 2003/87/EC as regards the administration of shipping companies by administering authorities in respect of a shipping company

Three delegated acts have also been published in the Official Journal of the European Union in December 2023:

Commission Delegated Regulation (EU) 2023/2849 of 12 October 2023 supplementing Regulation (EU) 2015/757 of the European Parliament and of the Council as regards the rules for reporting and submission of the aggregated emissions data at company level
Commission Delegated Regulation (EU) 2023/2776 of 12 October 2023 amending Regulation (EU) 2015/757 of the European Parliament and of the Council as regards the rules for monitoring greenhouse gas emissions and other relevant information from maritime transport
Commission Delegated Regulation (EU) 2023/2917 of 20 October 2023 on the verification activities, accreditation of verifiers and approval of monitoring plans by administering authorities pursuant to Regulation (EU) 2015/757 of the European Parliament and of the Council on the monitoring, reporting and verification of greenhouse gas emissions from maritime transport, and repealing Commission Delegated Regulation (EU) 2016/2072

Also in December 2023, the Commission has adopted an implementing act laying down the list of islands and ports and the list of transnational public service contracts concerned by the specific derogations pursuant to Article 12(3-d) and (3-c) of the ETS Directive:

Commission Implementing Decision (EU) 2023/2895 of 19 December 2023 laying down the list of islands and ports referred to in Article 12(3-d) of Directive 2003/87/EC of the European Parliament and of the Council and the list of transnational public service contracts or transnational public service obligations referred to in Article 12(3-c) of that Directive

The Commission adopted an implementing act on the list of shipping companies on 30 January 2024, specifying their responsible administering authority:

Commission Implementing Decision (EU) 2024/411 of 30 January 2024 on the list of shipping companies specifying the administering authority in respect of a shipping company in accordance with Directive 2003/87/EC of the European Parliament and of the Council

Monitoring, reporting and verifying GHG emissions

Since 1 January 2018, large ships over 5 000 gross tonnage loading or unloading cargo or passengers at ports in the European Economic Area (EEA) must monitor and report related GHG emissions (currently only CO₂ emissions, but also nitrous oxide and methane emissions as of 1 January 2024) and other relevant information. Monitoring, reporting and verification (MRV) of information must be done in conformity with the ‘MRV Maritime Regulation.

The MRV Maritime Regulation was conceived as a first step before the inclusion of these emissions within the scope of the EU Emissions Trading System. The MRV Maritime Regulation was revised in 2023 in the light of the inclusion of maritime transport emissions within the scope of the EU ETS.

The MRV Maritime Regulation is complemented by four other legal acts:

Delegated Regulation (EU) 2016/2072 on the verification activities and accreditation of verifiers
Delegated Regulation (EU) 2016/2071 as regards the methods for monitoring carbon dioxide emissions and the rules for monitoring other relevant information
Implementing Regulation 2016/1927 on templates
Implementing Regulation 2016/1928 further defining cargo carried for some ship categories

Main obligations for companies eligible under the MRV Maritime Regulation:

Monitoring: companies must – in line with their respective monitoring plans – monitor, for each of their ships, greenhouse gas emissions, fuel consumption and other parameters, such as distance travelled, time at sea and cargo carried on a per voyage basis, so as to gather annual data into an emissions report verified by an accredited MRV shipping verifier.
Emissions report: by 30 April of each year (31 March as of 2025), companies must, through THETIS MRV, submit to the Commission and to the States in which those ships are registered (‘flag States’) a satisfactorily verified emissions report for each ship that has performed maritime transport activities in the European Economic Area in the previous reporting period (calendar year). As from 31 March 2025, emissions reports should also be submitted to the responsible administering authority trough THETIS-MRV.
Document of compliance: by 30 June of each year, companies must ensure that all their ships that have performed activities in the previous reporting period and are visiting ports in the European Economic Area carry on board a document of compliance. This might be subject to inspections by Member States' authorities.

Every year, the Commission publishes a report to inform the public about the greenhouse gas emissions and energy efficiency information of the monitored fleet. You can find the annual reports in our Documentation section below.

Delivering the European Green Deal with maritime transport

As part of the European Commission’s legislative proposals to deliver the European Green Deal - the ‘Fit for 55’ package - published on 14 July 2021, several proposals addressed maritime transport’s climate impact, in addition to the extension of the EU ETS.

This includes:

A new FuelEU maritime Regulation to boost the demand for marine renewable and low-carbon fuels, by setting a maximum limit on the greenhouse gas content of energy used by ships calling at European ports and by encouraging zero-emission technology at berth (where ships stay in ports), with a technology-neutral approach;
Revising the Directive on Deployment of Alternative Fuels Infrastructure, which would set, among other benefits, mandatory targets for shore-side electricity supply at maritime and inland waterway ports;
Accelerating the supply of renewables in the EU, through a revision of the Renewable Energy Directive (RED), which increases the current EU target of at least 32% of renewable energy sources in the overall energy mix to at least 40% by 2030, with a focus on sectors where progress has been slower to date – including transport;
Revising the existing Energy Taxation Directive (ETD), which aims to align the taxation of energy products with the EU’s climate objectives and remove outdated exemptions, such as those for the intra-EU maritime transport sector.

This basket of measures reflects the EU’s goal to cut greenhouse gas emissions by addressing the various barriers to the decarbonisation of the shipping sector (technological barriers, economic barriers, etc.). The Commission aims to do that through two complementary angles: first, the improvement of energy efficiency (i.e. using less fuel) and, second, the greater use of renewable and low-carbon fuels (i.e. using cleaner fuels). These measures will allow the creation of a virtuous ecosystem for such cleaner fuels, as they will boost at the same time fuel demand, distribution, and supply.

Besides continuing to push for global action at the International Maritime Organisation (IMO), the Commission will continue supporting research and innovation towards the decarbonisation of maritime transport, in particular through Horizon Europe and the Innovation Fund.