What is the EU ETS for Shipping? — Maritime Emissions Trading Phase-In Guide 2026

Definition: What is the EU ETS for shipping?

The EU Emissions Trading System (EU ETS) is the EU’s cap-and-trade carbon-pricing system, in operation since 2005 across power, industry and aviation. Directive (EU) 2023/959 extended EU ETS to maritime transport from 1 January 2024. Shipping companies must surrender EU Allowances (EUAs) for their reported CO2 (and from 2026 CH4 + N2O) emissions on voyages within and to/from the EU/EEA.

Who is in scope?

Ships of 5,000 GT and above regardless of flag, carrying cargo or passengers for commercial purposes.
From 2027: offshore ships above 5,000 GT.
From 2027: general cargo and offshore ships between 400 and 5,000 GT for reporting only (surrender obligation subject to review).

Phase-in: 2024, 2025, 2026

2024 emissions — surrender 40% of verified CO2 emissions.
2025 emissions — surrender 70%.
2026 emissions — surrender 100%, extended to CH4 and N2O (non-CO2 GHG).

Allowances must be surrendered by 30 September of the year following the reporting year.

Emissions coverage: Tank-to-Wake CO2

100% of emissions on voyages between EU/EEA ports.
100% of emissions at berth in EU/EEA ports.
50% of emissions on voyages between an EU/EEA port and a non-EU port.

EU ETS for shipping is Tank-to-Wake — only what the ship burns. This is why FuelEU Maritime (Well-to-Wake) and EU ETS are complementary, not duplicative.

The shipping company administrator

Each shipping company is assigned to one EU member state’s competent authority (the ‘administering authority’), based on: flag of the ship (for companies headquartered in that flag state), member state with most port calls in the past four years, or member state of the first port call.

The administering authority reviews the monitoring plan, accepts the verified emissions report and ensures surrender compliance.

How EU ETS interacts with FuelEU Maritime and the IMO Net-Zero Framework

EU ETS prices Tank-to-Wake CO2. Penalty: purchase EUAs at market price (EUR 60–90/t typical range).
FuelEU Maritime prices Well-to-Wake GHG intensity. Penalty: EUR 2,400/t VLSFO equivalent above the limit. See What is FuelEU Maritime?
IMO Net-Zero Framework will add global Well-to-Wake GFI from 2027. See What is the IMO Net-Zero Framework?

All three regimes run in parallel for 2026–2030.

Monitoring and reporting

EU ETS shipping uses the existing EU MRV regime (Regulation 2015/757) as its measurement backbone. A ship-specific monitoring plan is submitted to the administering authority. Annual emissions are verified by an accredited verifier and reported via THETIS-MRV by 31 March, with allowance surrender by 30 September. See What is the EU MRV regulation?

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Frequently Asked Questions

How much does one tonne of CO2 cost under EU ETS?

The price floats with the EUA market. Typical 2025 range is EUR 60 to 90 per tonne. There is no ceiling.

Who pays: the owner, the operator, or the charterer?

The regulated entity is the shipping company (same as the ISM Company unless designated otherwise). In time-charter or voyage-charter arrangements, the contractual party bearing the carbon cost is typically the charterer; BIMCO has published model clauses.

Is the EU ETS penalty in addition to FuelEU?

Yes. The two regimes are independent. A ship may owe both an EUA cost (EU ETS, Tank-to-Wake CO2) and a FuelEU penalty or deficit-close cost (FuelEU, Well-to-Wake GHG intensity).

What happens if I do not surrender allowances by 30 September?

A fine of EUR 100 per tonne of un-surrendered emissions (indexed to inflation), and the obligation to surrender the missing allowances remains. Repeat failure can lead to publication of non-compliance and a port-call expulsion order under Article 20 of the directive.

Does EU ETS apply to ships on ice-class voyages?

An ice-class adjustment reduces the emissions count for ice-class 1A, 1A Super and equivalent vessels. The Commission publishes the adjustment methodology under delegated acts.

What is the EU ETS for Shipping? — Maritime Emissions Trading Guide