Key Proposed Changes to EU ETS, EU MRV & FuelEU Maritime

Key Proposed Changes to EU ETS, EU MRV & FuelEU Maritime

1. Single “Shipping Company” Definition

• FuelEU Maritime will replace its standalone company definition with the EU ETS “shipping company” concept.
• The responsible entity will be aligned across EU MRV, EU ETS and FuelEU Maritime.
• Existing contractual mandates covering only EU ETS obligations may need revision to include FuelEU responsibilities.

2. Expansion to Offshore Operations

• The proposal introduces the concepts of offshore operations and offshore worksites.
• Compliance will no longer be limited to voyages between ports.
• Offshore support vessels, offshore construction, wind farm installation vessels, cable-laying vessels, maintenance vessels and similar offshore activities connected to an EU Member State’s territorial sea, Exclusive Economic Zone (EEZ) or continental shelf will be brought within the regulatory framework.

3. Extension of EU MRV Scope

• From 2029, the following vessel types between 400 GT and 4,999 GT will enter the EU MRV system:
  • Oil tankers
  • Chemical tankers
  • Gas carriers
  • LNG carriers

4. Changes to Container Transhipment Rules

• The European Commission will review the list of neighbouring container transhipment ports annually (instead of every two years).
• The transhipment-share threshold will be reduced from 65% to 50%.
• A new infrastructure criterion will allow certain non-EU ports within 150 nautical miles of an EU port to qualify if they have:
  • Draught greater than 11 m
  • Berth length greater than 250 m
  • Suitable ship-to-shore cranes
• The 50% transhipment-share criterion will apply to non-EU ports located within 300 nautical miles of an EU port.
• Ports in countries applying measures equivalent to the EU ETS (or linked ETS systems) will not be included on the neighbouring transhipment port list.

5. Targeted Relief for Large Containerships

• Until 31 December 2035, containerships of 10,000 TEU and above may surrender fewer ETS allowances for:
  • Voyages exceeding 300 nautical miles from a non-EU port to an EU port.
  • Related in-port emissions.
• Relief is based on the proportion of containers unloaded solely for onward loading onto another vessel bound for a non-EU port.

6. “Report Once” Compliance Model

• The proposal introduces a common reporting framework.
• A single verified MRV report will become the factual basis for:
  • EU MRV
  • EU ETS
  • FuelEU Maritime
• This is intended to reduce duplicate reporting and improve consistency.

7. Revised Reporting Deadlines

By 28 February:

• MRV Report submitted to the verifier.
• FuelEU Compliance Balance Report submitted to the verifier.
• This replaces the current FuelEU deadline of 31 January for submission to the verifier.

By 31 March:

• Verified MRV Report recorded.
• Verified FuelEU Compliance Balance recorded.

8. Monitoring Plan Updates

• Existing MRV monitoring plans must be reviewed before the revised rules become applicable (currently proposed for 1 January 2029, or the second year after entry into force).
• Monitoring plans will need updating to include the additional data required under the integrated MRV–ETS–FuelEU reporting framework.

9. EU ETS Maritime Allowance Reserve

• A new support mechanism will be established using 110 million EU ETS allowances for the period 2028–2040.
• The reserve will support:
  • Sustainable maritime fuels.
  • Zero-emission propulsion technologies.
  • Electric propulsion.
  • Wind-assisted propulsion.
• The mechanism aims to reduce the remaining cost gap between fossil fuels and sustainable alternatives.
• Additional incentives are proposed for:
  • Island voyages.
  • Fuels meeting qualifying origin criteria.
  • Technologies installed in EU shipyards.
• Shipping companies may apply annually based on:
  • Verified sustainable fuel use.
  • Verified emission reductions achieved during the previous calendar year.
• If applications exceed the available reserve, allowances will be distributed proportionally among eligible applicants.