Guidelines for the preparation of monitoring plans in maritime transport
Our guideline for the preparation of monitoring plans (available in German only) provides you with an overview of the individual procedural steps for the preparation as well as the content and technical requirements for the monitoring of greenhouse gas emissions in maritime transport.
Geographic Scope
Starting in 2024, all countries in the European Economic Area (EEA) engaging in the EU ETS 1 for Maritime transport are required to surrender emission allowances for greenhouse gas emissions generated during a journey within the EEA or on journeys into or out of the EEA (see Article 3ga Directive 2003/87/EC).
The emissions caused are considered differently with regard to the surrender obligation:
- 50 per cent of emissions for journeys where one port of call is outside the EEA and the other is within the EEA.
- 100 per cent of emissions for journeys within the EEA where both ports of call are located in an EU ETS 1 Member State.
- 100 per cent of emissions at berths within the EEA.
Port of call
Article 3(z) Directive 2003/87/EC identifies a port as a port of call where a ship stops to load or unload cargo, to embark or disembark passengers, or where an offshore vessel stops for the purpose of changing crews. Article 3(z) Directive 2003/87/EC excludes the following stops which are not covered by the term ‘port of call’ within the meaning of EU ETS 1:
- stays exclusively for refuelling/bunkering;
- stops for procurement of supplies;
- stays for the sole purpose of changing crews (except for offshore vessels);
- stays in dry docks or for carrying out repairs to the ship and/or its equipment;
- stays in a harbour because the ship needs assistance or is in distress at sea;
- transhipments from ship to ship outside of harbours;
- stays exclusively for the purpose of seeking shelter from bad weather or those necessitated by search and rescue operations;
- stays of container ships in neighbouring container handling ports listed in the implementing act pursuant to Article 3ga(2) of the Directive 2003/87/EC. The purpose of this is to prevent evasive manoeuvres to minimise surrender obligations by making stopovers prior to entering the European Economic Area. The ports of ‘East Port Said’ in Egypt and ‘Tanger Med’ in Morocco have been listed for the start of maritime emissions trading in 2024. The implementing act will be regularly evaluated to counteract further evasive manoeuvres.
FAQs on geographic scope
Ship Types and Greenhouse Gases Covered
Ship types
The size of a ship is indicated by the gross tonnage (GT) from a length of 24 metres.
- The Directive 2003/87/EC’s scope initially covers large ships such as cargo and passenger ships with a GT of 5,000 or more.
- Large offshore vessels with a GT of 5,000 or more will follow from 2027.
The European Commission will prepare a report by the end of 2026 analysing the feasibility and economic, environmental and social impacts of including small ships in the Directive to extend the scope to small ships of 400 GT or more.
The EU MRV Maritime Transport Regulation already covers smaller general cargo and offshore vessels with a GT of 400 or more from 01/01/2025 (see link below MRV obligations). Warships, fishing vessels, naval auxiliaries, simple wooden vessels, non-powered vessels and government ships for non-commercial purposes are excluded from the Directive 2003/87/EC scope, as is inland navigation.
Greenhouse gases covered
Obligated Parties in Maritime Transport
Greenhouse gas emissions caused during journeys or calling in at ports within the EEA or during journeys to or from the EEA are the shipping company’s responsibility.
According to Article 3w) Directive 2003/87/EC, the term ‘shipping company’ means the shipowner or any other organisation or person (for example the manager or the bareboat charterer) who has assumed responsibility from the shipowner for operating the ship. The same person has also agreed to assume all obligations and responsibilities arising from the International Management Code for the Safe Operation of Ships and for Pollution Prevention as set out in Annex I to Regulation (EC) No 336/2006.
This especially includes ISM companies or ISM managers. If there is no contractual agreement or the authorisation has not been properly proven, the ship owner remains the obligated party. In the first instance and in case of doubt, the shipowner is therefore the obligated party. The shipping company must surrender allowances for the Emissions generated by all ships operated under their responsibility that fall within the above-mentioned scope pursuant to the statutory regulations.
If the shipowner remains the responsible shipping company within the meaning of maritime emissions trading, a list of all ships for which the shipowner has assumed responsibility for the EU ETS 1 obligations must be submitted to DEHSt. Please use the template declaration for compliance with EU ETS 1 obligations
FAQs on obligated parties
Mandating of the ISM Managers
A shipowner can transfer responsibility for the operation of their ships and the compliance with EU ETS 1 obligations to another organisation or person by a mandate. The basic requirement for this is that the mandated person or organisation can represent the shipowner as an ISM manager. It is therefore necessary for the ISM manager to hold a "Document of Compliance" (ISM-DOC), i.e. to be ISM-certified. If this is the case, then this ISM manager can assume responsibility for the compliance with the EU ETS 1 obligations from the shipowner. Following proper authorisation (mandate), the ISM manager is thus deemed to be a shipping company within the meaning of the Directive 2003/87/EC (cf. Article (3)(w)) Directive 2003/87/EC). The content requirements for the mandate have been defined by the EU Commission (cf. Article (1)(3) Implementing Regulation (EU) 2023/2599). Please use the mandate template linked below. The mandate must be (electronically) signed by both the shipowner and the ISM manager and submitted to the verifiers together with the monitoring plan and to the competent authority when applying to open the MOHA. If the mandate is not written in German or English, a certified German or English translation must be submitted.
If an ISM manager is to assume responsibility for complying with the EU ETS 1 obligations of various ship owners (e.g. single-ship companies), the ISM manager must be authorised by each owner through a corresponding mandate. The ISM manager then assumes responsibility as a shipping company for the compliance with the EU ETS 1 obligations for all vessels under his responsibility, even if they belong to different owners. The ISM manager must then apply for the opening of a ship operator holding account (MOHA) covering all vessels for which they have assumed the compliance with the EU ETS 1 obligations.
If the ISM manager wishes to be released from the assumed ETS obligations, both parties must formally revoke the mandate in writing and the corresponding document must be sent to DEHSt for review. Upon revocation of the mandate, a change of shipping company takes place necessitating the submission of a partial emission report (see FAQ). The same applies to mandates that take effect after 01/01/2024. In this case, a change of company also takes place during the reporting period. ISM managers who have not been expressly authorised by the owner to assume the EU ETS 1 obligations through a mandate are not considered responsible parties within the meaning of the Directive 2003/87/EC and are therefore not sanctioned in the event of non-compliance with the EU ETS 1 obligations. In this case, the responsibility to comply with the ETS obligations remains with the owner.
Responsibility for complying with the MRV and EU ETS 1 obligations must be assumed by the same organisation or person (see Recital (6) of Implementing Regulation (EU) 2023/2599).
FAQs on mandating
Monitoring
Shipping companies covered by the EU ETS 1 for maritime transport must monitor their Emissions based on an approved monitoring plan.
Shipping companies that were operating within the scope of the EU MRV Maritime Transport Regulation before 01/01/2024 must submit a monitoring plan (revised if necessary) to the competent administrative authority by 01/04/2024 for each of their ships falling within the scope. In this plan, they must specify the methods by which CO2, CH4 and N2O emissions and other relevant information will be monitored and reported. The plan must be approved by the competent administrative authority by 06/06/2025.
For ships newly falling within the scope of the EU MRV Maritime Transport Regulation after 01/01/2024, the monitoring plans must be submitted immediately, but no later than three months after the first call at an EEA port. Authorisation will be granted within the first four months after the first call at an EEA port. The monitoring plans must have been verified by a verifier to ensure compliance with Article 6 and 7 of the EU MRV Maritime Transport Regulation before submission to the competent authority.
Further information can be found under
tasks and obligations for shipping companies, verifiers and authorities
Reporting
From 2025, shipping companies must submit a verified Emissions report (EmB) at ship level to the competent administrative authority, the flag state authority of the competent Member State if applicable and the European Commission by 31/03 of each year.
In addition, from 2025, shipping companies must submit their aggregated emissions data at company level to the competent administrative authority as a basis for determining the surrender obligation. The same deadline applies here as for the emissions report at ship level.
Account suspension and imposition of fines are provided for to enforce reporting obligations in the event of violations.
Further information can be found under
tasks and obligations for shipping companies, verifiers and authorities
FAQs on reporting
Surrender Obligation
The number of emission allowances a shipping company must surrender for the Emissions caused by their ships is determined within the report on aggregated emissions data at company level. Annex II Part C of the EU MRV Maritime Transport Regulation contains a calculation table including all additional calculation steps that correspond to the scope defined in Directive 2003/87/EC and the transitional arrangements and exemptions granted such as:
- Surrender-reducing offsetting for the use of biogenic fuels or biogenic proportions in fuels, "renewable fuels of non-biological origin" (RFNBO) and "recycled carbon fuels" (RCF)
- 50 per cent reduced surrender obligation for journeys between ports of call in Member States and ports of call outside the jurisdiction of Member States and vice versa
- Surrender-reducing offsetting of CCU (Carbon Capture and Utilisation) or Carbon Dioxide Capture and Storage (CCS) approaches pursuant to Article 12(3a) and (3b) Directive 2003/87/EC
- Surrender-reducing inclusion of ice-class ships by 5 per cent by the end of 2030
- The reduced surrender obligation in percentage terms in the first two years of maritime emissions trading: allowances have to be surrendered for only 40 per cent of verified emissions for 2024 and for only 70 per cent of verified emissions for 2025.
Emission allowances for the emissions caused in the previous year must be surrendered to the Union Registry by 30/09 of each year.
Various Penalties are specified in the event of violations of the surrender obligation:
- publication of the names of the shipping companies concerned
- determination of a penalty payment with a subsequent surrender obligation
- expulsion/determination regulation
- imposition of fines.
Further information can be found under Union Registry
FAQs on surrender obligation
Aquisition of Allowances
Allowances can be purchased on the Primary Market via auctions on the European Energy Exchange (EEX). Allowances can be sold bilaterally or via various derivatives provided by financial institutions on the Secondary Market.
A shipping company must open a trading account or a maritime operator holding account in the Union Registry to acquire allowances.
Competent Administrative Authority
On 30/01/2024, the European Commission adopted the Implementing Decision (EU) 2024/411. This sets out the allocation list for all shipping companies that fall within the scope of EU ETS 1 from 01/01/2024. The decision designates the companies to responsible authorities in accordance with Article 3gf (2) of Directive 2003/87/EC. The decision is effective across all EU Member States, assigning all relevant shipping companies to a national authority. The list will be updated every two or four years. We, the German Emissions Trading Authority, are the competent administrative authority in Germany.
Further information (in German only)