European Commission Presents Proposal to Revise the EU ETS for Maritime Transport
Greater focus on decarbonisation, possible extension to smaller vessels, and alignment with future IMO regulations.
European Commission takes the next step in revising the EU ETS for maritime transport
The European Commission has published its proposal for the revision of the European Union Emissions Trading System (EU ETS) for maritime transport. The proposal includes several measures aimed at accelerating the energy transition within the maritime sector, reducing administrative burdens, and improving alignment between European legislation and future international developments.
Investment in sustainable marine fuels
One of the key elements of the proposal is the use of ETS revenues to further support the development and uptake of sustainable marine fuels and clean technologies. To achieve this, the European Commission proposes a new Sustainable Maritime Alternative Propulsion (SMAP) mechanism, through which ETS revenues will be reinvested in the decarbonisation of the maritime sector. In addition, the Commission encourages EU Member States to allocate a larger share of their national ETS revenues towards investments that support the decarbonisation of ETS sectors, including maritime transport.
Possible extension to vessels from 400 GT
The proposal also includes a reduction of the current EU ETS threshold to 400 GT for certain vessel types within the cargo sector. At this stage, it remains unclear which specific vessel types will be included and when these changes would enter into force. Further details are expected to be provided at a later stage.
Alignment with future IMO regulations
The European Commission explicitly takes into account the possible development of an IMO Net-Zero Framework. Should an international carbon pricing mechanism be introduced through the IMO, the Commission intends to review the EU ETS once again. The objective is to prevent the same CO₂ emissions from being subject to both European and international carbon pricing mechanisms.
Initial assessment – further details to follow
The Royal Association of Netherlands Shipowners (KVNR) has indicated that it is currently carrying out a more detailed assessment of the proposal. Additional explanatory documents are still awaited before the full impact on the Dutch maritime sector can be evaluated. Furthermore, the proposal will be subject to discussions within the European Parliament and the Council of the European Union before any final legislation is adopted.
What does this mean for the maritime sector?
Although the proposal is still part of the European legislative process, it provides a clear indication of the direction the European Commission intends to take. Shipowners, ship managers and other maritime stakeholders are therefore advised to closely monitor further developments regarding the EU ETS and its future alignment with IMO regulations.
Custom Maritime Service will continue to monitor developments in maritime legislation and regulatory compliance and will keep its clients and partners informed as further updates become available.
