EU ETS: Regulation (EU) 2023/957 amends Regulation (EU) 2015/757
The European Parliament and the Council of the European Union have adopted Regulation (EU) 2023/957 on May 10, 2023, amending Regulation (EU) 2015/757.
The amendment aims to incorporate maritime transport activities into the EU Emissions Trading System (EU ETS) and establish a framework for monitoring, reporting, and verifying additional greenhouse gas emissions and emissions from different ship types.
The move comes in response to the Paris Agreement's objectives, which aim to limit the global temperature increase to well below 2°C above pre-industrial levels and pursue efforts to achieve a 1.5°C increase.
The urgency of meeting these goals has been emphasized by the Intergovernmental Panel on Climate Change's recent findings, highlighting the need for immediate and substantial reductions in global greenhouse gas emissions.
This regulatory development aligns with the European Green Deal, a comprehensive strategy designed to achieve climate neutrality by 2050.
The European Green Deal seeks to transform the Union into a resource-efficient and competitive economy, decoupling economic growth from resource use while safeguarding natural capital and protecting citizens from environment-related risks.
The amended regulation broadens its scope to cover ships of 5,000 gross tonnage and above, including their greenhouse gas emissions during voyages for commercial purposes between ports under the jurisdiction of a Member State.
From January 1, 2025, the regulation will also apply to general cargo ships and offshore ships below 5,000 gross tonnage. The covered greenhouse gases include carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O).
To ensure accurate monitoring and reporting, companies will be required to report aggregated emissions data at the company level for the ships under their responsibility during the reporting period.
The Commission is empowered to adopt delegated acts to incorporate CH4 and N2O emissions, as well as greenhouse gas emissions from offshore ships, into the regulation.
These acts will also refine monitoring methods, align with international and European standards, and support the effective operation of the EU ETS.
The EU's decision to include maritime transport in the emissions trading system represents a significant step towards reducing greenhouse gas emissions and achieving climate goals.
By holding the maritime industry accountable, the EU aims to contribute to the global effort to combat climate change and protect the environment for future generations.
For more information, please see the document below (available only to subscribers):
REGULATION (EU) 2023/957 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL (Amending Regulation (EU) 2015/757 in order to provide for the inclusion of maritime transport activities in the EU Emissions Trading System and for the monitoring, reporting and verification of emissions of additional greenhouse gases and emissions from additional ship types)