REVISION OF THE EU ETS
ATTN: ALL FULL MEMBERS
ALL TECHNICAL COMMITTEE MEMBERS
Dear Members,
EU ETS Consultation Open
- The European Commission launched a public consultation on the evaluation of the EU Emissions Trading System (EU ETS).
- Goal: Evaluate ETS effectiveness and prepare for the 2040 emissions target revision.
- The evaluation includes a preliminary review of the IMO GHG agreement, focusing on avoiding double counting and double payment.
- DG CLIMA has called for evidence and data, especially on the ambition level of IMO’s market-based measures so that double counting and double payment are avoided.
Deadline for input: 8 July 2025.
Revision of the EU ETS and alignment with the IMO measures
- DG CLIMA (European Commission) views IMO agreement as historic but not ambitious enough to meet IMO climate targets.
Possible future adjustments
- Assess the GHG pricing mechanism and IMO market-based and review the EU ETS accordingly, so as to avoid a significant double burden on maritime operators and prevent environmental backsliding.
- Consider extending EU ETS coverage to smaller ships (between 400–5,000 GT).
- Improving system efficiency, and simplifying monitoring, reporting and verification (MRV) requirements If possible.
- Optimise the use of EU ETS revenues in support of decarbonisation investment.
Response to the consultation
- The OPC is expected to be launched in the first quarter of 2025. It will last for 12 weeks and will be accessible via the Commission’s public consultations page “Have your say” in all official EU languages here.
Members may find more details of the process attached.
