Av Jodie Darmanin Attended EU ETS For Maritime Transport Workshop which was held on 07th August by the Malta Maritime Law Association in conjunction with the Malta Resources Authority. The Seminar outlined the main legislative framework covering the EU Emissions Trading System (ETS) and the implementation of ETS Maritime Practicalities.
The MRV Regulation highlights the Monitoring, Reporting and Verification aspects which a shipping company is obliged to follow. In line with this regulation, a shipping company must prepare a monitoring plan which is subsequently verified by a verifier and then approved by the competent authority. The shipping company must also annually submit an emissions report for each attributed ship and a company-level emissions report which includes all of the attributed ships to the competent authority.
On the other hand, the ETS Directive establishes a scheme for greenhouse gas emission allowance trading within the Community in order to promote reductions of greenhouse gas emissions in a cost-effective and economically efficient manner. Annex 1 of the Directive mentions the following:
- As from 01st January 2024, shipping companies who own cargo and passenger ships of 5,000 GT and above must surrender EU ETS allowances corresponding to verified annual CO2 emissions.
- As from 01st January 2026, this will be expanded and will also apply to Methane and Nitrous Oxide Emissions.
- As from 01st January 2027, offshore ships of 5,000 GT and above must also surrender EU ETS allowances corresponding to verified annual CO2, Methan and Nitrous Oxide Emissions.
The shipping company can surrender the allowances in respect of reported emissions through a Maritime Operator Holding Account (MOHA) which is mandatory and can be set up by contacting the Malta Resources Authority, if the shipping company is attributed to Malta.
The seminar also went into great detail about the procedure which shipping companies should follow in order to surrender their allowances, which can be done through the online system THETIS-MRV.
Av. Jodie Darmanin
Junior Associate
Mifsud & Mifsud Advocates
For more information you can contact one of our Team Members at Mifsud & Mifsud Advocates.
