No smaller vessels in Emissions Trading System

Smaller ships below 5,000 gross tons will not be included in the EU ETS - the EU's emissions trading system - when shipping is included in 2024. However, smaller ships will be required to report their emissions from 2025 and will be evaluated for possible inclusion in 2026.

At the end of last week, the EU Parliament and the Council of Ministers and the Council agreed to include emissions from shipping within the framework of the EU ETS. In 2024, ships must pay for 40 percent of their emissions, in 2025 for 70 percent and in 2026 to account for 100 percent of their emissions.

Most large ships will be covered by the EU ETS from the start, but smaller ships of 400-5,000 gross tonnage will be included in the "MRV Regulation" on monitoring, reporting and verification of CO2 emissions from 2025 and their inclusion in the EU ETS will to be reviewed in 2026.

In addition, the agreement takes into account geographical features and proposes transitional measures for small islands, ice-class vessels and voyages concerning outermost regions and public service obligations.

In addition, the agreement takes into account geographical specificities and proposes transitional measures for small islands, ice class ships and journeys relating to outermost regions and public service obligations and strengthens measures to combat the risk of evasion in the maritime sector.

Certain member states with a relatively high number of shipping companies will in addition receive 3.5% of the ceiling of the auctioned allowances to be distributed among them.

The co-legislators agreed to include non-CO2 emissions (methane and N2O) in the MRV regulation from 2024 and in the EU ETS from 2026.