Newsletter EU ETS Maritime

September 2024

Dear contact person,

Through this newsletter EU ETS Maritime, we aim to keep you informed about the (policy) developments and obligations that are relevant to you.

The topics of this newsletter are:

Frequently encountered issues Monitoring Plan
Zero rating of sustainable biofuels
Application process Maritime Operator Holding Account
Role of the NEa in approving Monitoring Plans
Where to find more information?

Frequently encountered issues Monitoring Plan

A key requirement of the EU ETS is the timely submission of Monitoring Plans (MP) to the administering authority. The NEa will assess the MPs for approval. First, the NEa will conduct a completeness check on all submitted MPs. This process will determine whether an MP meets the minimum requirements to proceed to the assessment phase. The minimum requirements are further explained on this webpage.

During a preliminary review of the MPs submitted to the NEa, it has been noted that many of them are insufficient in the same areas. To assist shipping companies in addressing these issues, we have compiled a list of the most common shortcomings and best practices for completing an MP, which can be found on this webpage . This resource aims to guide you in preparing a more comprehensive and accurate Monitoring Plan. If your submitted MP would be returned by NEa, this webpage provides guidance to help you revise it to meet the required standards.

When an MP is returned to the shipping company, this is communicated through the THETIS-MRV system. We kindly request that you resubmit the revised and verified MP to NEa as soon as possible. Timely resubmission is crucial to avoid delays in the evaluation process and ensuring compliance with regulatory deadlines.

Zero rating of sustainable biofuels

Shipping companies may claim a zero-emission factor for biofuels, provided that the required evidence is demonstrated. This approach reduces the reported total emissions and, consequently, lowers the surrender obligation under Directive 2003/87 (the EU ETS Directive).

To qualify for the zero rating of biofuels, shipping companies must demonstrate that the biofuel complies with the monitoring and reporting procedures outlined in Regulation 2015/757 (the Monitoring, Reporting and Verification Regulation or MRV).

For this, shipping companies should include biofuels in their monitoring plan and describe a procedure used to determine the CO2 emission factors of biofuels in accordance with Point 1.2 of Part C to Annex II to the MRV. The procedure should include the specific method by which compliance with the applicable sustainability and greenhouse gas savings criteria are demonstrated.

This compliance is in principle evidenced through a Proof of Sustainability (PoS). The shipping company must be able to provide a PoS based on a voluntary scheme or national certification scheme, which is approved by the Commission under the sustainability framework of Directive 2018/2001 (the Renewable Energy Directive or RED). The PoS should apply to the specific fuel batch that has been purchased by the shipping company.

Please note that if compliance with the MRV and the RED cannot be confirmed to the satisfaction of the verifier and the competent authority, the biofuel will be considered a fossil source stream and cannot be reported with a zero-emission factor.

More detailed information on this topic can be found in section 5.2.2. and section 9 of the General guidance for shipping companies

Application process Maritime Operator Holding Account

A condition for participating in the ETS is access to a Maritime Operator Holding Account (MOHA). This account provides access to the registry where emission allowances can be purchased and surrendered. Depending on the ship owner's situation, the processing time for application and approval can be very long.

While a smooth application might have a processing time of 2 to 3 months, in some cases, this can extend to 6 months . Most required documents need to be certified and legalized before you send them in, which will take time. Furthermore, if you send in incomplete or incorrect documents, this will delay the process. So please don’t hesitate to contact us, if you have any doubts about the required documents during the process.

Taking this into account, the NEa strongly advises ship owners/ISM managers who take on the EU ETS and MRV obligations to start the application process as soon as possible.

Role of the NEa in approving Monitoring Plans

Due to the revision of the MRV Regulation (EU) 2015/757), administering authorities now have to approve monitoring plans. This is a new step compared to the previous version of the MRV (before 1/1/2024). The Dutch Emissions Authority (NEa) is the administering authority for shipping companies attributed to the Netherlands. The NEa will check whether the monitoring plans contain all elements the Regulation calls for, and whether these elements meet the requirements. This means that we may ask to add to or modify a monitoring plan, even when it has been assessed as satisfactory by an accredited verifier. In this way, we ensure that all monitoring plans comply with the Regulation.

Where to find more information?

More information on the definition of a shipping company, the obligations and practical information can be found on the NEa website.

For answers to specific questions, please check the FAQ pages of the European Commission and EMSA.

In case your question remains unanswered, you can send an email to our helpdesk.

For questions regarding THETIS MRV, please contact the EMSA via maritimesupportservices@emsa.europa.eu

Kind regards,

The Dutch Emissions Authority