Since 1 January 2024, the EU Emission Trading System (ETS) Directive applies to maritime transport. Credit to: NicoElNino / Shutterstock.com Since 1 January 2024, the EU Emission Trading System (ETS) Directive applies to maritime transport. Introduction For the 2024 calendar year any shipping company having cargo or passenger ships of 5,000 gross tonnage (GT) or above calling a port located in the EEA (European Economic Area[1]) for commercial purposes must cover 40% of the total CO2 emissions reported for 2024 with EU emission allowances ("EUAs") irrespective of the vessel's flag or her owner's nationality. One EUA covers the emission of one metric ton of CO2. The number of EUAs due must cover all CO2 emissions produced for the whole 2024 calendar year for the "fleet" of vessels registered with the same competent EEA administering authority by the shipping company which has taken over the EU ETS responsibility by latest 30 September 2025. Compliance The default position under the EU ETS Directive[2] is that the responsibility for compliance with these rules lies with the registered shipowner. However, the registered shipowner can mandate an ISM company to fulfil these responsibilities in its place[3]. This mandate requires a specific contract which then also must be properly notified[4] with the competent administering authority. As to the MRV Regulation[5] the responsibility for compliance can be either the registered shipowner or the ISM company. However, it is important that the party responsible for MRV compliance is the same party as the one responsible for the EU ETS compliance. Shipping Company "Shipping company" in this context is the party which conducts the obligations under the EU ETS and MRV, that can either be the registered shipowner or, if properly mandated, the ISM company of the vessel. Maritime Operator Holding Account ("MOHA") EUAs can only be surrendered to the competent EEA administering authority from a Maritime Operator Holding Account ("MOHA