Starting in 2024, any shipping company with cargo or passenger vessels of 5,000 gross tonnage (GT) or above that call at a port within the European Economic Area (EEA) must adhere to stringent new CO2 emissions regulations. These regulations, which are part of the EU Emission Trading System (ETS), require these companies to cover 40% of their total CO2 emissions for the year with EU Emission Allowances (EUAs). One EUA is equivalent to one metric ton of CO2.
The responsibility for obtaining these allowances lies primarily with the registered shipowner, though they can delegate this task to an ISM (International Safety Management) company through a specific contract. This contract must be properly notified to the relevant EEA administering authority. Additionally, compliance with Monitoring, Reporting, and Verification (MRV) regulations is essential, and the party responsible for MRV must also handle the EU ETS compliance.
A shipping company, as defined by these regulations, is the entity fulfilling obligations under both the EU ETS and MRV, which could be the registered shipowner or an authorized ISM company. To surrender EUAs, companies must have a Maritime Operator Holding Account (MOHA) in the EEA country where their administering authority is based. For non-EEA companies, an administering authority will be assigned based on the company’s first voyage within the EU ETS Directive’s scope.
EUAs can be obtained through auctions held by 28 countries on the European Energy Exchange (EEX) in Leipzig, as well as on the secondary market via financial institutions or trading brokers. While charterers can buy and trade EUAs, only shipowners can surrender them to the authorities.
As the implementation date approaches, shipping companies are advised to familiarize themselves with these new regulations to ensure compliance. Skuld, a leading maritime insurance provider, is offering support and advice to its members to navigate these changes effectively.