PURPOSE: to provide for rules on monitoring, reporting and verification that are necessary to extend the EU ETS to maritime transport activities and to provide for the monitoring, reporting and verification of other greenhouse gas emissions and emissions from additional ship types.

LEGISLATIVE ACT: 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.

CONTENT: the amendments to Regulation (EU) 2015/757 on the monitoring, reporting and verification of greenhouse gas emissions from maritime transport (MRV) aim to provide rules for monitoring, reporting and verification that are necessary to extend the EU Emissions Trading Scheme (EU ETS) to maritime transport activities and to provide for the monitoring, reporting and verification of other greenhouse gas emissions and emissions from other ship types.

The amended Regulation lays down rules for the accurate monitoring, reporting and verification of greenhouse gas emissions and of other relevant information from ships arriving at, within or departing from ports under the jurisdiction of a Member State, in order to promote the reduction of greenhouse gas emissions from maritime transport in a cost-effective manner.

Scope of application

The Regulation will apply to ships of 5 000 gross tonnage or more.

From 1 January 2025, the Regulation will apply to:

- general cargo ships below 5 000 but not less than 400 gross tonnage and ocean-going vessels of less than 5 000 but not less than 400 gross tonnage;

- off-shore ships with a gross tonnage of 5 000 and above.

Greenhouse gases covered

The greenhouse gases covered by this Regulation are:

- carbon dioxide (CO2);

- with regard to emissions released from 2024 onwards, methane (CH4); and nitrous oxide (N2O) .

Reporting of emissions data

Regulation (EU) 2015/757 is amended to require companies to report aggregated emissions data at company level and to submit this data to the responsible authority, as well as to submit their verified monitoring plans for approval by that authority.

The Commission will assess every two years the overall impact of maritime transport activities on the global climate, including through emissions or effects of greenhouse gases other than CO2 and particulates with a global warming potential not covered by this Regulation.

Review

The Commission will, no later than 31 December 2024, review the Regulation, inter alia to include ships of less than 5000 but not less than 400 gross tonnage within the scope of the Regulation with a view to the possible subsequent inclusion of such ships within the scope of Directive 2003/87/EC or to propose other measures to reduce greenhouse gas emissions from such ships. The review will be accompanied, if appropriate, by a legislative proposal.

ENTRY INTO FORCE: 5.6.2023.

The European Parliament adopted by 500 votes to 131, with 11 abstentions, a legislative resolution on the proposal for a directive of the European Parliament and of the Council amending Directive 2003/87/EC establishing a scheme for greenhouse gas emission allowance trading within the Union, Decision (EU) 2015/1814 on the establishment and operation of a market stability reserve for the greenhouse gas emission allowance trading system of the Union and Regulation (EU) 2015/757.

The European Parliament adopted its position at first reading with a view to adopting a regulation amending regulation (EU) 2015/757 to provide for the inclusion of shipping activities in the EU Emissions Trading Scheme and for the monitoring, reporting and verification of emissions of other greenhouse gases and of emissions from other types of ships.

The European Parliament's position adopted at first reading under the ordinary legislative procedure amends the Commission's proposal as follows:

Amendments to Regulation (EU) 2015/757 on the monitoring, reporting and verification of greenhouse gas emissions from maritime transport (MRV)

The amendments to Regulation (EU) 2015/757 aim to provide for rules on monitoring, reporting and verification that are necessary to extend the EU Emissions Trading Scheme (EU ETS) to maritime transport activities and to provide for the monitoring, reporting and verification of other greenhouse gas emissions and emissions from other types of ships.

The amended Regulation lays down rules for the accurate monitoring, reporting and verification of greenhouse gas emissions and of other relevant information from ships arriving at, within or departing from ports under the jurisdiction of a Member State, in order to promote the reduction of greenhouse gas emissions from maritime transport in a cost-effective manner.

Scope of application

To increase the environmental effectiveness of the monitoring, reporting and verification system, ensure a level-playing field and reduce the risk of circumvention, general cargo ships below 5 000 gross tonnage but not below 400 gross tonnage should be included in Regulation (EU) 2015/757 from 2025 .

Offshore ships emit a relevant share of greenhouse gas emissions. Therefore, that Regulation should also apply to offshore ships of 400 gross tonnage and above from 2025 . The Commission should assess before 31 December 2024 whether additional ship types below 5 000 gross tonnage but not below 400 gross tonnage should be included in Regulation (EU) 2015/757.

The amended text highlights that while carbon dioxide (CO2) emissions represent the large majority of greenhouse gas emissions from maritime transport, methane (CH4) and nitrous oxide (N2O) emissions represent a relevant share of such emissions. The regulation therefore provides for the inclusion of non-CO2 emissions (methane and N2O) in the MRV regulation from 2024 .

Methods for monitoring CO2 emissions and other relevant information

By 1 October 2023, the Commission should adopt delegated acts to take into account the inclusion of CH4 and N2O emissions, as well as the inclusion of greenhouse gas emissions from offshore ships, within the scope of this Regulation. The methods for monitoring CH4 and N2O emissions shall be based on the same principles as the methods for monitoring CO2 emissions as set out in Annex I, with any adjustments necessary to reflect the nature of the relevant greenhouse gas.

Emissions reporting

From 2025, by 31 March of each year, companies should, for each ship under their responsibility, submit to the administering authority responsible, to the authorities of the flag States concerned for ships flying the flag of a Member State and to the Commission an emissions report for the entire reporting period of the previous year, which has been verified as satisfactory by a verifier. The administering authority responsible may require companies to submit their emissions reports by a date earlier than 31 March, but not earlier than by 28 February.

Publication of information and reporting by the Commission

The Commission should assess every two years the overall impact of shipping activities on the global climate, including through emissions or effects of greenhouse gases other than CO2 and particulate matter with a global warming potential not covered by this Regulation.

Review

Lastly, the Commission should, by 31 December 2024, review the Regulation, in particular taking into account the experience gained from its implementation, inter alia, to include offshore ships of less than 5 000 but not below 400 gross tonnage in the scope of the Regulation with a view to a possible future inclusion of such ships in the scope of Directive 2003/87/EC or to propose other measures to reduce greenhouse gas emissions from such ships. The review will be accompanied, if appropriate, by a legislative proposal.

The Committee on the Environment, Public Health and Food Safety adopted the report by Peter LIESE (EPP, DE) on the proposal for a directive of the European Parliament and of the Council amending Directive 2003/87/EC establishing a system for greenhouse gas emission allowance trading within the Union, Decision (EU) 2015/1814 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading scheme and Regulation (EU) 2015/757.

The committee responsible recommended that the European Parliament's position adopted at first reading under the ordinary legislative procedure should amend the proposal as follows:

Amendments to Regulation (EU) 2015/757 on the monitoring, reporting and verification of greenhouse gas emissions from maritime transport

The amendments proposed by committee seek 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.

The amended text modified the subject matter to stipulate that this Regulation should lay down rules for the accurate monitoring, reporting and verification of greenhouse gas emissions and of other relevant information from ships arriving at, within or departing from ports under the jurisdiction of a Member State, in order to promote the reduction of greenhouse gas emissions from maritime transport in a cost effective manner.

Scope

To take account of the Union's strengthened climate objectives as well as the objectives of the Paris Agreement, it is proposed to amend the scope of Regulation (EU) 2015/757.

The amended text points out that while carbon dioxide (CO2) emissions account for the vast majority of greenhouse gas emissions from shipping, methane (CH4) and nitrous oxide (N2O) emissions account for a significant proportion of these emissions. Members therefore proposed the inclusion of CH4 and N2O emissions in Regulation (EU) 2015/757. This should apply from 2024 .

In order to increase the environmental effectiveness of the monitoring, reporting and verification system, ensure a level playing field and reduce the risk of circumvention, general cargo ships of less than 5000 but not less than 400 gross tonnage should be included in Regulation (EU) 2015/757 from 2025.

The regulation should also apply to offshore ships of 400 gross tonnage or more from 2025.

The Commission should assess before 31 December 2024 whether other types of ships of less than 5000 but not less than 400 gross tonnage should be included in Regulation (EU) 2015/757.

Methods for monitoring CO2 emissions and other relevant information

By 1 October 2023, the Commission should adopt the delegated acts to take into account the inclusion of CH4 and N2O emissions, as well as the inclusion of greenhouse gas emissions from offshore ships, within the scope of this Regulation. The methods for monitoring CH4 and N2O emissions should be based on the same principles as the methods for monitoring CO2 emissions.

Reporting

From 2025, by 31 March of each year, companies should, for each ship under their responsibility, submit to the administering authority responsible, to the authorities of the flag States concerned for ships flying the flag of a Member State and to the Commission an emissions report for the entire reporting period of the previous year, which has been verified as satisfactory by a verifier. The administering authority responsible may require companies to submit their emissions reports by a date earlier than 31 March, but not earlier than by 28 February.

Publication of information and Commission report

Members proposed that the Commission should, every two years, assess the overall impact of maritime transport activities on the global climate, including through emissions or effects of greenhouse gases other than CO2 and of particles with a global warming potential not covered by this Regulation.

Review

Lastly, the Commission should, no later than 31 December 2024, review this Regulation, in particular taking into account further experience gained in its implementation, inter alia for the purpose of including ships below 5 000 gross tonnage but not below 400 gross tonnage within the scope of this Regulation with a view to a possible subsequent inclusion of such ships within the scope of Directive 2003/87/EC or to proposing other measures to reduce greenhouse gas emissions from such ships.