Monitoring, reporting and verification of ships’ emissions

KEY POINTS

Scope

• The regulation applies to all cargo and passenger vessels of 5,000 gross tonnage (GT) and above visiting EU ports.
• Under the European Green Deal (see summary) and following an amendment by Regulation (EU) 2023/957, which provides for the monitoring of additional GHGs and emissions from additional ship types, the regulation will also apply from 2025 to:
  • general cargo ships below 5,000 GT but not below 400 GT;
  • offshore ships of 400 GT and above.
• The European Commission will assess before 31 December 2024 whether additional ships below 5,000 GT but not below 400 GT should be included.
• The MRV rules apply to CO₂ emissions, but non-CO₂ emissions (namely methane and nitrous oxide) will also be included from 2024.
• They cover emissions from ships both at sea and at berth.

Monitoring

• Each year, companies must monitor emissions and other relevant information for each of their vessels covered by the regulation.
• To ensure that monitoring is consistent and comparable, companies must document their methodology to be applied in a monitoring plan. Methods for monitoring GHG emissions and other relevant information are set out in Annexes I and II to Regulation (EU) 2015/757.
• The monitoring plan must contain complete and transparent documentation on items such as the various sources of emissions on the vessel and the procedures for determining activity data per voyage (i.e. distance covered, number of passengers, details of cargo carried, time spent at sea, etc.).
• Companies must prepare a monitoring plan for each of their ships covered by the regulation.

Reporting

• Every year, companies must submit an externally verified emissions report to the Commission and to the authorities of the flag states¹ concerned.
• Ships that have visited EU ports during a previous reporting period must carry onboard a valid document showing their compliance with the MRV obligations.
• From 2025, by 31 March of each year, companies should, for each ship under their responsibility, submit a verified report for the entire reporting period of the previous year to:
  • the administering authority responsible;
  • the authorities of the flag states concerned for ships flying the flag of an EU Member State; and
  • the Commission.
• From 2025, by 31 March of each year, companies should also submit to the administering authority responsible the aggregated emissions data at company level. The latter should cover the emissions from all ships under their responsibility in the reporting period of the previous year and to be reported under the EU emissions trading system (ETS) directive (Directive 2003/87/EC – see summary) in relation to maritime transport activities.

Inclusion of maritime transport emissions in the EU ETS

• Under the European Green Deal and following an amendment to the EU ETS directive by Directive (EU) 2023/959, maritime transport emissions will be included within the scope of the EU ETS from 2024.
• The EU ETS will apply to cargo and passenger vessels of 5,000 GT and above from 2024, and to offshore ships of 5,000 GT and above from 2027.
• The EU ETS will initially cover ships’ CO₂ emissions. It will also cover their methane and nitrous oxide emissions from 2026.
• To ensure a smooth transition, there is a phase-in period. Shipping companies will pay for 40 % of their emissions reported for 2024, for 70 % of emissions reported for 2025, and for 100 % of emissions reported for 2026.
• All emissions from voyages within the EU and emissions emitted within an EU port will be covered, while only half of the emissions from journeys to or from a non-EU country will be covered.

Implementing and delegated acts

The Commission has adopted several implementing and delegated acts establishing rules for the application of Regulation (EU) 2015/75 on topics like the administration of shipping companies by Member States, the submission of aggregated emissions data at shipping company level or the rules for the monitoring of greenhouse gas emissions (see the list of implementing and delegated acts).

Assessment and review

• The Commission must publish an annual report on GHG emissions and other relevant information from maritime transport, including aggregated results reported by companies.
• The Commission will assess every 2 years the overall impact of shipping activities on the global climate, including through emissions or effects of greenhouse gases other than CO₂ and particulate matter with a global warming potential not covered by the regulation.
• It should also review the regulation by 31 December 2024.