Key EU regulations for maritime company in 2026: EU MRV, ETS, FuelEU
The maritime sector face strong regulations on decarbonisation from the EU. Being included in the EU Emissions Trading System (ETS) since 2024 and subject to FuelEU, maritime companies now bear financial cost for their emissions and face obligation to reduce mission intensity year by year. Decarbonisation is no longer just a vision but has become a business necessity for shipping companies to operate.
In July 2021, the European Commission presented “Fit for 55” package aimed at cutting EU net greenhouse gas (“GHG”) emissions by at least 55% by 2030 compared to 1990 levels, and achieving climate neutrality by 2050.
The “Fit for 55” package amended a few regulations for the maritime sector, including
- Monitoring, Reporting and Verification (MRV): regulation on collection, reporting, verifying emissions data.
- FuelEU: regulation on ships’ GHG intensity and onshore power use, and
- EU ETS: a cap-and-trade system for emissions allowance
This blog explains the key requirements, timelines, and compliance actions under these regulations, and guide organisations how to act efficiently through an integrated approach.
Monitoring, Reporting and Verification (MRV)
The EU MRV requires maritime companies to monitor, verify and report on GHG emissions data from maritime transport activities. It mandates annual reporting and verification on operational data (such as voyages done and cargo carried) and emissions data such as fuels, dioxide (CO₂), methane (CH₄), and nitrous oxide (N₂O) emissions.
MRV aims to ensure emissions data transparency and integrity and serves as a baseline for companies to surrender EU ETS emissions allowance.
For who?
- Ships of 5,000 gross tonnage (GT) and above,
- Since January 2025, also include general cargo ships of 400 GT to 5,000 GT, and offshore ships ≥ 400 GT.
Timeline and actions for companies
- By 1 April 2024: company must submit the Monitoring plan (MP) for each ship and obtain verification from certified verifiers. MP is a predefined template that contains information on methods used to monitor and report emissions and is expected to be reviewed and updated annually to ensure accuracy.
- From 2025 onwards, by 31 March each year, company must submit an emissions report for each ship. A ship-specific emissions report contains information from all voyages done in the whole reporting period, including information on travel distance, calling ports, cargo types, fuel types and consumptions, and CO2, CH4, and N2O emissions at sea and at berth.
This verified data is typically aggregated into a company-level emissions report and submitted to the European Commission, flag states, and administering authorities. - From 2025 onwards, by 30 June each year, ship must carry a valid Document of Compliance (DoC) issued by MRV verifier onboard as required upon entry any EU ports.
EU Emissions Trading System (ETS)
While EU MRV mandates data monitoring and verification on ship- and company-level emissions, EU Emissions Trading System (ETS) is a cap-and-trade system that requires companies to surrender allowance to cover their emissions from the previous year. Each year, a limited number of EU Allowances (EUAs) is made available for trading in the market, and this is reduced yearly.
For who?
- Cargo and passenger ships of or above 5 000 GT
- From 2027 onwards, offshore ships of or above 5 000 GT will also be included.
Timeline
The EU ETS has been extended to include maritime shipping emissions from 2024. Companies surrendered allowance for the first time in 2025 for their emissions in 2024.
The share of emissions that must be covered by the surrendering of allowances gradually increases each year:
- In September 2025, 40% of emissions reported for 2024 must be surrendered by emission allowances
- In September 2026: 70% of emissions reported for 2025 must be surrendered by emission allowances
- In September 2027 and beyond: 100% of reported emissions for previous year must be surrendered by emission allowances
What type of emissions are covered
Starting from Jan 2026, EU ETS extends the scope from CO2 to also include CH₄ and N₂O, becoming fully aligned with the MRV. Non-compliance can lead to fine (€100 per tonne of excessive CO2, adjusted annually for EU inflation) or ships being banned from trading in the EU.
Actions for companies
- Throughout the year, monitor and collect emissions data for each ship and obtain verification from EU MRV administrative authorities by 31 March.
- Each year before September 30, surrender the equivalent number of allowances for emissions from last year. Allowances can be purchased year-round in the primary market through auctions on the European Energy Exchange (EEX) or can be sold bilaterally or through various derivatives provided by financial institutions.
FuelEU Maritime
Under the Fit for 55 package, FuelEU Maritime is the law that sets GHG intensity limits on the energy used by ships of and above 5000 GT. The GHG intensity is calculated in a well-to-wake basis, covering emissions from fuel extraction, production, transportation and onboard energy use. The GHG intensity limit decreases gradually over time, starting with a 2% decrease by 2025 (baseline: the fleet’s average well-to-wake GHG intensity in 2020) and reaching up to an 80% reduction by 2050.
| Year | Reduction in GHG intensity (baseline is set at the average 2020 fleet intensity: : 91.16 gCO₂e/MJ) |
| 2025 | - 2% |
| 2030 | - 6% |
| 3024 | - 14.5% |
| 2040 | - 31% |
| 2045 | - 62% |
| 2050 | - 80% |
In addition, FuelEU requires passenger and container ships above 5,000GT to use onshore power supplies at all relevant ports from 2030, when at berth for more than two hours.
Timeline and actions for company
- By 31 Aug 2024: Submit a Fuel EU Monitoring Plan outlining how you intend to monitor and report emissions for each ship. If there are new ships falling under scope, a monitoring plan has to be submitted within two months of calling at an EU port. A monitoring plan include information on :
- How fuel consumption will be measured and recorded.
- How greenhouse gas (GHG) intensity will be calculated.
- Data collection procedures.
- Methods used to monitor electricity taken from on-shore power supply (OPS).
- Procedures for quality control and reporting.
- From 1 Jan 2025 onwards: start monitor and collect operational data for each ships on:
- Ports of departure and arrival
- Connection to OPS or exceptions
- Emission factors (for all fuel types)
- Substitute energy consumption
- Ice class information
- From 2026 onwards: by 31 January each year, submit an annual FuelEU report containing above data for each ship to a certified verifier.
The connection bewteen three: EU MRV, EU ETS, and FuelEU
| Focus | Links to others | |
| EU MRV | Emissions and operational data reporting and audits. | As foundation for EU ETS and FuelEU |
| EU ETES | Cap-and-trade emissions allowances | Use MRV data as input |
| FuelEU Maritime | Regulate ship’s emissions intensity and renewable energy use. |
GHG intensity reduction can result in lower emissions and ETS allowance purchases Use MRV data as input. |
Other regulations to lookout: IMO CII, DCS and SEEMP
Besides the EU, The International Maritime Organization (IMO) has similar requirements for shipping companies to report and calculate emissions intensity and draw up monitoring plan.
An overview of key IMO emission regulations:
| IMO requirement | Explanation |
| Data collection system (DCS) | Requires ships of 5,000 GT and above to monitor and annually report fuel consumption. |
| Energy Efficiency Existing Ship Index (EEXI) | Requires ships of 400 GT and above to assesses energy efficiency based on its design specifications. |
| Carbon Intensity Indicator rating (CII) | Requires ships of 5,000 GT and above to monitor calculate annual operational carbon intensity based on operational data and assigns a rating from A (best) to E (worst) whose thresholds become increasingly struct every year. |
| Ship Energy Efficiency Management Plan (SEEMP) | The SEEMP is a document where monitoring, reporting and improving on above metrics are recorded. |
While IMO and EU MRV requirements share many in common (etc. fuel consumption calculation, reporting cycle, data reporting format), the EU is working on aligning EU MRV with IMO to further ensure a universal regulative framework for international shipping companies.
Where are you at shipping decarbonisation?
Decarbonisation and compliance require robust and long-term planning. Are you a shipping company that operate within EU ports? We offer free introduction call to analyse regulatory application to your company. Reach out to us at Esther@2impact.nl
