Other news from ISM News Update no. 126:

• Performance lists Paris MoU
• Corporate Sustainability Reporting Directive (CSRD) & ESG reporting
• Update valid from 1 July 2023 on Interim guidance to shipping related to the situation in Ukraine

EU-ETS and Fuel EU Maritime

January 2024 new legislation, EU-Emission Trading System comes into effect. This legislation continuous where the MRV (Monitoring, reporting & verifying) stops. MRV requires companies to give insight on their CO2 emissions per vessel. The EU ETS requires to monitor and report CO2, Nitrous Oxide and Methane for the whole fleet. Further it adds a financial/commercial aspect by means of the surrender of EU Allowances, a type of carbon allowances that allows a company to submit a certain amount of CO2.  In short: there are implementation and compliance issues, as well as commercial issues to be addressed.

In 2025 the new requirements of FuelEU Maritime will come into force. The FuelEU Maritime focusses on 2 items: Use of alternative fuels and mandatory use of shore power.  Targets for the use of alternative fuel require a greenhouse gas intensity reduction of 2% in 2025, and increases to 80% reduction by 2050. The requirements for the use of shore power will require container vessels and passenger ships above 5000 GT to use shore power for all consumption on board while at berth for more than 2 hours in specified ports and in all EU ports where shore power is available by 2035.

It is strongly recommended to consider the effects of these requirements and prepare for the implementation thereof.

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