LR: Administering Authorities for EU ETS in the maritime sector

Lloyd's Register published a Class News on 4 February 2024 regarding the publication of the list of Administering Authorities (AAs) under the EU Emission Trading System (EU ETS).

Applicability: shipowners, ship operators, ship managers and ship masters.

Since 1 January 2024, the maritime sector has been included in the EU Emission Trading System (EU ETS). (See Class News 07/2023, 14/2023, 21/2023 for additional details on the inclusion of maritime in the EU ETS).

For shipping companies to be able to report annual emissions as per EU ETS requirements, an administering Member State must be appointed. This Member State is known as the shipping company’s Administering Authority (AA).

Attribution of Administering Authorities

The European Commission has now published Implementing Decision 2024/411. This lists the attributed AA for shipping companies based on information available in THETIS-MRV and the European Union maritime information and exchange system (SafeSeaNet) on 20 November 2023.

For any non-EU registered shipping companies not included in the above list, which own ships that have made a voyage to a European Economic Area (EEA) port since 1 January 2024 and fall into the scope of EU ETS, or which have had responsibility for ETS compliance contractually mandated to them as the ISM DOC holder, the AA shall be (as per EU 2023/2599) either:

The Member State from which the first voyage by one of their ships in scope of EU ETS started or finished; or
In the instance where two or more Member States had the equal highest number of port calls by their ships in scope of ETS, the AA will be first port call to the Member State with the joint highest port calls in scope of ETS.

This list will be updated:

Before 1 February 2026 (and every two years afterwards), to reattribute shipping companies registered in a Member State to another AA if they changed the EU Member State of registration, or to include shipping companies which fell within the scope of the EU ETS for the first time.
Before 1 February 2028 (and every four years afterwards), to reattribute shipping companies that are not registered in a Member State to another AA where the shipping company performed the greatest estimated number of port calls in the preceding four monitoring years.

Administering Authorities will remain as per the most recently published list, irrespective of changes in the shipping company’s activities or registration. Only when the AA list is updated (as per the indicated cycles above) will the AA responsible for a shipping company change.

Next steps for Lloyd’s Register clients

For those affected by EU ETS:

As appropriate and where not already addressed, decide if responsibility for compliance with EU ETS will remain with the shipowner or be contractually mandated to the ISM DOC company.
Shipping companies responsible for compliance with EU ETS should refer to the list of attributed AAs to determine their relevant AA.
Where responsibility has been contractually mandated from the shipowner to the ISM company, the contractual mandate must be shared with the relevant AA.
Shipping companies must inform their AA of the list of ships they have assumed responsibility for EU ETS compliance. Should the list of ships change, it is the shipowner’s responsibility to inform their AA.
As per Delegated Regulation (EU) 2023/2904 Article 15a, the shipping company with responsibility for EU ETS compliance must open a Maritime Operators Holding Account (MOHA) in the Union Registry:
- Within 40 working days for shipping companies, which are included in the published list of assigned AA (Regulation 2024/411).
- Within 65 working days of the first port of call falling within the scope of the ETS Directive for shipping companies not listed in Regulation 2024/411.

Further information

Please visit the ETS website pages for more details about ETS, including MOHAs and the Union Registry, as well as key compliance dates. Alternatively, register to join the LR webinar on 7 February 2024 to understand the latest regulations and navigate the compliance landscape effectively.

For more details about Emissions Verification services, visit the website here.

For any additional queries related to this Class News, contact Fitfor55@lr.org

LINK TO THE ORIGINAL ARTICLE

More LR class news is available HERE