Understanding EU ETS Compliance For Shipping Companies


The European Union Emissions Trading System (EU ETS) is a critical mechanism aimed at reducing greenhouse gas emissions. Here’s a guide to help shipping companies navigate their responsibilities and requirements under the EU ETS, says an article published on rina website.


  • Shipowners or Shipping Companies are primarily responsible for EU ETS compliance.
  • Delegation to ISM Company is possible with proper documentation.
  • Implement and upload the updated MRV monitoring plan to THETIS-MRV platform by January 1, 2024.
  • Include monitoring of specified emissions and activity procedures.
  • Submit the MRV monitoring plan to the Administering Authority after verifier assessment by April 1, 2024.

Who Is Responsible For EU ETS?

  • The shipowner, or “Shipping Company,” is primarily responsible for EU ETS compliance.
  • The shipowner can delegate this responsibility to the ISM Company with a signed document submitted to the Administering Authority.

Requirements For Shipping Companies

Updated MRV Monitoring Plan (Starting Jan 1, 2024)

  •  Implement the updated MRV monitoring plan for each ship.
  •  Upload the updated plan to the THETIS-MRV platform for verifier assessment.
  •  Include monitoring of methane, nitrous oxide emissions, emission factors of biofuel, RFNBO, RCF, and data flow activity procedures.

Submission Deadlines (Starting April 1, 2024)

Submit the MRV monitoring plan, assessed by the verifier, to the Administering Authority.

Annual Reporting (Starting 2025)

Submit aggregated verified emissions data at the Company level to the Administering Authority by March 31 each year.

Allowance Surrender (Starting 2025)

  • Surrender required allowances by September 30 each year based on emissions:
  • 40% of verified aggregated CO2 emissions for 2024.
  • 70% of verified aggregated CO2 emissions for 2025.
  • 100% of verified aggregated GHG emissions (CO2, CH4, N2O) for 2026.

Consequences Of Non-Compliance


Non-compliance results in a penalty of €100 per ton of emissions for which allowances were not surrendered by September 30.

Enforcement Measures

  • Failure to comply with surrender requirements for consecutive periods may lead to enforcement actions.
  • If measures are unsuccessful, all ships of the non-compliant company may be denied entry to EU ports until surrender obligations are fulfilled.


Compliance with EU ETS requirements is crucial for shipping companies to meet emission reduction goals and avoid penalties or enforcement actions. It’s essential to understand responsibilities, deadlines, and reporting procedures to ensure seamless adherence to EU ETS regulations.

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Source: rina