The Inclusion of Maritime Transport in the EU Emissions Trading System:

Legal, Regulatory and Practical Implications for Global Shipping

Maritime Transport and Climate Impact

Maritime transport plays a fundamental role in the European Union’s economy and remains one of the most energy-efficient modes of transport. Nevertheless, it has emerged as a significant and rapidly growing source of greenhouse gas (GHG) emissions. In 2018, global maritime emissions reached 1,076 million tonnes of CO₂, accounting for approximately 2.9% of global anthropogenic emissions. Without effective intervention, emissions could rise by up to 130% by 2050 compared to 2008 levels, undermining the objectives of the Paris Agreement. At EU level, maritime transport already represents 3–4% of total CO₂ emissions, exceeding 124 million tonnes in 2021.

Global Action – The IMO Framework

Given the global nature of shipping, coordinated international measures are essential. In July 2023, the International Maritime Organization adopted a revised GHG Strategy, committing the sector to net-zero emissions by or around 2050, with interim reduction targets for 2030 and 2040 and the development of fuel standards and emissions pricing mechanisms by 2025.

EU Action – Extension of the EU ETS

As of January 2024, the EU Emissions Trading System (EU ETS) has been extended to cover CO₂ emissions from ships of 5,000 GT and above calling at EU ports, irrespective of flag. The system applies on a route-based basis, covering 50% of emissions from voyages starting or ending outside the EU and 100% of emissions from intra-EU voyages and port activities. Methane and nitrous oxide will be included from 2026.

Compliance Obligations and Phase-In

Shipping companies must purchase and surrender allowances for verified emissions. A phased implementation applies: 40% of 2024 emissions, 70% of 2025 emissions and 100% from 2027 onwards. The first surrender obligation for 2024 emissions will apply in September 2025.

Monitoring, Reporting and Verification (MRV)

The EU ETS extension builds on the MRV Maritime Regulation. Companies must monitor emissions on a voyage basis, submit verified annual emissions reports via THETIS-MRV and ensure that vessels hold valid Documents of Compliance.

Fit for 55 and the European Green Deal

The EU ETS extension is complemented by the FuelEU Maritime Regulation, the revision of the Alternative Fuels Infrastructure Directive, amendments to the Renewable Energy Directive and the revision of the Energy Taxation Directive, collectively addressing energy efficiency and fuel transition.

Conclusion

The inclusion of maritime transport in the EU ETS represents a structural shift in climate regulation. For shipowners and operators, early planning, robust compliance systems and contractual clarity are now essential.

Key Legal Takeaways

  • Maritime transport is now fully integrated into the EU ETS cap, subjecting shipping to a declining emissions ceiling.
  • Compliance obligations apply irrespective of flag, expanding exposure for non-EU operators.
  • The phase-in mechanism offers limited transitional relief and does not reduce long-term cost exposure.
  • Accurate MRV compliance forms the legal foundation of EU ETS enforcement and penalty regimes.
  • Alignment with future IMO measures will be critical in managing regulatory overlap and compliance risk.

Disclaimer: This article is for general information purposes only and does not constitute legal advice.