Maritime Transport Regulations, 2024

L.N. 316 of 2024

CLIMATE ACTION ACT

(CAP. 643)

European Union Greenhouse Gas Emissions Trading System for

Maritime Transport Regulations, 2024

IN EXERCISE of the powers conferred by article 27 of the

Climate Action Act, the Minister responsible for climate action policy

and the Minister responsible for justice, in consultation with the

Climate Action Authority have made the following regulations:-

(1) The title of these regulations is the European Union

Greenhouse Gas Emissions Trading System for Maritime Transport

Regulations, 2024.

(2) These regulations provide for the implementation in Malta

of the European Union system for greenhouse gas emissions allowance

trading, established by Directive 2003/87/EC of the European

Parliament and of the Council of 13 October 2003 establishing a

system for greenhouse gas emission allowance trading within the

Union and amending Council Directive 96/61/EC, for maritime

activities listed in Schedule 1.

(3) These regulations transpose Directive 2003/87/EC, as

amended by Directive (EU) 2023/959 of the European Parliament and

of the Council of 10 May 2023 amending Directive 2003/87/EC

establishing a system for greenhouse gas emission allowance trading

within the Union and Decision (EU) 2015/1814 concerning the

establishment and operation of a market stability reserve for the Union

greenhouse gas emission trading system, to the extent that it relates to

maritime transport.

For the purposes of these regulations and unless the context

otherwise requires

"account holder" means a natural or legal person that holds

an account in the Union registry;

"Act" means the Climate Action Act;

"administering authority" or "administering authority in

respect of a shipping company" means the authority responsible

for administering the EU ETS in respect of a shipping company

in accordance with regulation 3;

"allowance" means an allowance to emit one (1) tonne of

carbon dioxide equivalent during a specified period, which shall

be valid only for the purposes of meeting the requirements of

Directive 2003/87/EC and shall be transferable in accordance

with the provisions of Directive 2003/87/EC;"

"auctioneer" means the Debt Management Office within the

Treasury Department appointed by the Government to auction

allowances on its behalf;

"authorised representatives" means the representatives,

nominated by an account holder in respect of an account in the

Union registry, to have access to that account and undertake

processes relating to that account on behalf of the account

holder;

"Authority" means the Climate

Action

Authority

established by article 9 of the Act;

"Commission" means the European Commission;

"confidential information" means any non-public

information deemed to be sensitive by the shipping company

and, or any privileged information falling within the scope of

these regulations, revealed only for promoting and elaborating

certain purposes. It shall include inter alia

(a)

trade secrets;

(b) any other information having a commercial

value that would be, or may reasonably be expected to be

destroyed or diminished if the information were disclosed;

or

(c)

information other than trade secrets or

information under paragraph (b) concerning a person,

organisation or undertaking in respect of their business,

professional, commercial or financial affairs;

"cruise passenger ship" means a passenger ship not having

a cargo deck, designed exclusively for commercial transportation

of passengers in overnight accommodation on a sea voyage;

"Decision (EU) 2015/1814" means Decision (EU) 2015/

1814 of the European Parliament and of the Council of 6 October

2015 concerning the establishment and operation of a market

stability reserve for the Union greenhouse gas emission trading

scheme and amending Directive 2003/87/EC;

"Directive 2003/87/EC" means Directive 2003/87/EC of

the European Parliament and of the Council of 13 October 2003

establishing a system for greenhouse gas emission allowance

trading within the Union and amending Council Directive 96/61/

EC;

"Directive 2023/959" means Directive 2023/959 amending

Directive 2003/87/EC amending Directive 2003/87/EC

establishing a system for greenhouse gas emission allowance

trading within the Union and Decision (EU) 2015/1814

concerning the establishment and operation of a market stability

reserve for the Union greenhouse gas emission trading system;

"emissions" means the release, from ships performing a

maritime transport activity listed in Schedule 1, of the

greenhouse gases specified in respect of that activity;

"EU ETS" means the European Union Emissions Trading

System established by Directive 2003/87/EC;

"HELCOM Recommendation 25/7" means HELCOM

Recommendation 25/7, Safety of Winter Navigation in the Baltic

Area, of the Baltic Marine Environment Protection Commission;

"Member State" means a state which is a member of the

European Union and shall also include Iceland, Liechtenstein

and Norway;

"Minister" means the Minister responsible for climate

change policy;

"National Accreditation Board (Malta)" means the National

Accreditation Board (Malta) established by regulation 3 of the

National Accreditation Board (Malta) (Establishment)

Regulations;

"national registry administrator" means the entity,

designated in accordance with relevant decisions and regulations

adopted by the Commission pursuant to Directive 2003/87/EC,

being responsible for the management, on behalf of the

Government, of shipping operator holding accounts under the

jurisdiction of the Government in the Union registry;

"other relevant legal bodies" means any other entities,

public or private which, by virtue of the provisions of these

regulations are obliged to act, provide information, direct or re-

direct any action, or inform or report to any other indicated body.

This shall also include any other specified bodies or persons to

which these regulations may apply;

"person" means any natural or legal person;

"port of call" means the port where a ship stops to load or

unload cargo, or to embark or disembark passengers, or the port

where an offshore ship stops to relieve the crew, considering that

stops for the sole purposes of refuelling, obtaining supplies,

relieving the crew of a ship other than an offshore ship, going

into dry-dock or making repairs to the ship and, or its equipment,

stops in port because the ship is in need of assistance or in

distress, ship-to-ship transfers carried out outside ports, stops for

the sole purpose of taking shelter from adverse weather or

rendered necessary by search and rescue activities and stops of

containerships in a neighbouring container transhipment port

listed in the implementing act adopted in accordance with

paragraph (2) of Article 3ga of Directive 2003/87/EC are

excluded;

" public" means one (1) or more persons and associations,

organisations or groups of persons;

"Regulation (EC) No 336/2006" means Regulation (EC) No

336/2006 of the European Parliament and of the Council of 15

February 2006 on the implementation of the International Safety

Management Code within the Community and repealing Council

Regulation (EC) No 3051/95;

"Regulation (EC) No 765/2008" means Regulation (EC)

No.765/2008 of the European Parliament and of the Council of 9

July 2008 setting out the requirements for accreditation and

repealing Regulation (EEC) No 339/93;

"Regulation (EU) 2015/757" means Regulation (EU) 2015/

757 of the European Parliament and of the Council of 29 April

2015 on the monitoring, reporting and verification of greenhouse

gas emissions from maritime transport, and amending Directive

2009/16/EC;

"shipping company" means the ship owner or, if so

mandated in accordance with the relevant decisions and

regulations adopted by the Commission in accordance with

Directive 2003/87/EC, any other organisation or person that has

assumed the responsibility for the operation of the ship from the

shipowner and that, on assuming such responsibility, has agreed

to take over all the duties and responsibilities imposed by the

International Management Code for the Safe Operation of Ships

and for Pollution Prevention, set out in Annex I to Regulation

(EC) No 336/2006;

"surrender" means the accounting of an allowance by a

shipping company against verified emissions;

"Union" and "European Union" shall have the same

meaning as assigned to the definition "the European Union" in

the European Union Act;

"Union registry" means the registry established and

maintained in accordance with Article 19 of Directive 2003/87/

EC for the execution of processes pertaining to the maintenance

of holding accounts and the allocation, surrender and

cancellation of allowances;

"verifier" means a legal person or another legal entity

carrying out verification activities in accordance with these

regulations and accredited by a national accreditation body in

accordance with Regulation (EC) No 765/2008 and relevant

decisions and regulations adopted by the Commission in

accordance with Directive 2003/87/EC, or natural person

otherwise authorised, without prejudice to Article 5(2) of

Regulation (EC) 765/2008, at the time a verification report is

issued;

"voyage" means a voyage as defined in Article 3, point (c),

of Regulation (EU) 2015/757.

(1)

These regulations shall apply to

(a) shipping companies performing activities listed in

Schedule 1 resulting in emissions of greenhouse gases specified

in respect of those activities and for whom Malta is designated as

the administering authority, by virtue of

(i)

being registered in Malta; or

(ii) in the case of shipping companies that are not

registered in a Member State, for whom Malta is the

Member State with the greatest estimated number of port

calls from voyages performed by those shipping companies

in the last four (4) monitoring years; or,

(iii) in the case of shipping companies that are not

registered in a Member State and that did not carry out any

voyage falling within the scope of Directive 2003/87/EC in

the preceding four (4) monitoring years, to which Malta is

the Member State where ships of those shipping companies

have arrived or started their first voyage falling within the

scope of Directive 2003/87/EC;

(b) to any other relevant legal bodies on which these

regulations put any obligation.

(1) The quantity of allowances that are not allocated free Auctioning of

of charge, as determined for Malta in accordance with Directive 2003/ allowances.

87/EC, shall be auctioned by the auctioneer in accordance with the

relevant decisions and regulations adopted by the Commission

pursuant to Directive 2003/87/EC.

(2) The auctioneer shall act in accordance with the relevant

decisions and regulations adopted by the Commission in accordance

with Directive 2003/87/EC.

A beneficiary of funding of any action or project funded Publicity of

from EU ETS auctioning revenues shall ensure the visibility of such funding

EU ETS auction

source of funding.

revenues.

(1) A shipping company shall have a maritime operator Union Registry.

holding account in the Union registry.

(2) The Authority shall act as national registry administrator in

respect of maritime operators holding accounts of shipping companies

to which these regulations apply. The national registry administrator

shall perform its functions in accordance with relevant decisions and

regulations adopted by the Commission in accordance with Directive

2003/87/EC. The national registry administrator shall ensure that there

is no conflict of interest between itself and holders of maritime

operator holding accounts.

(3) A request to open a maritime operator holding account

shall be made by the Authority or the shipping company to the national

registry administrator.

(4) A request for the opening of a maritime operator holding

account shall include all information required by the national registry

administrator in accordance with the relevant decisions and regulations

adopted by the Commission in accordance with Directive 2003/87/EC

and any requirements and terms and conditions made by the national

registry administrator.

(5) The national registry administrator shall open and

administer a maritime operator holding account for a shipping

company in accordance with the relevant decisions and regulations

adopted by the Commission in accordance with Directive 2003/87/EC

and any terms and conditions it may make

Provided that the national registry administrator shall not

open an account unless it is satisfied that the request is in accordance

with the requirements of this regulation.

(6) An account holder of a maritime operator holding account

and its nominated authorised representatives shall act in accordance

with the relevant decisions and regulations adopted by the

Commission in accordance with Directive 2003/87/EC and any terms

and conditions made by the national registry administrator.

(7) Where a shipping company fails to comply with any

requirements of decisions and regulations adopted by the Commission

in respect of registries or terms and conditions made by the national

registry administrator in respect of registries, the national registry

administrator may prevent the transfer of allowances or other

accounting units into and out of the maritime operator holding account

held by that shipping company until non-compliance is rectified

Provided that the national registry administrator shall not

prevent surrender or cancellation of allowances in accordance with

regulation 16.

(1)

Allowances issued in respect of the period beginning

1 st January 2021, and subsequent periods, shall be valid indefinitely.

(2) Allowances issued as from 1st January 2021 in a ten (10)

year period shall be valid for emissions from the first year of that

period onwards.

For the purposes of these regulations, a shipping company

shall monitor annual emissions in accordance with Regulation (EU)

2015/757.

(1) For the purposes of these regulations, a shipping

company shall report annual emissions in accordance with Regulation

(EU) 2015/757.

(2) From the year 2025, a shipping company shall, by 31 st

March each year, submit to the Authority a report of aggregated

emissions data at company level in accordance with Regulation (EU)

2015/757, for the previous calendar year

Provided that the report shall be verified by a verifier in

accordance with Regulation (EU) 2015/757.

By 31 st March of the subsequent year, the shipping

(3)

company shall also enter in the Union Registry the amount of

emissions reported in the verified report of aggregated emissions data

at company level in accordance with sub-regulation (2), in respect of a

calendar year.

(1) The Authority may perform any checks it deems Checks

necessary on any report submitted by a shipping company pursuant to performed

the Authority.

regulation 9.

(2) The Authority shall not accept a report of aggregated

emissions data at company level which has not been verified as

satisfactory or for which a verification report has not been submitted.

Where it deems necessary, the Authority may require the submission

of a revised report of verified aggregated emissions data at company

level. Where necessary, the shipping company shall update the amount

of emissions entered into the Union Registry.

(3) Where, in respect of any monitoring year, a shipping

company does not submit a report of verified aggregated emissions

data at company level in accordance with regulation 9, or where it is

deemed that the shipping company has not submitted a report of

aggregated emissions data at company level which is in accordance

with the requirements set out in regulation 9, the Authority may, unless

there is written agreement between the Authority and the shipping

company providing otherwise, determine itself the aggregated

emissions data at company level for maritime activities performed by

that shipping company for that monitoring year. The Authority shall

use best available data and shall ensure that a conservative estimate is

made that does not underestimate emissions

Provided that the Authority shall notify the shipping

company of the emissions as determined and the methodology used to

determine such emissions

Provided further that the Authority shall enter the amount

of emissions as determined in accordance with this sub-regulation into

the Union registry.

(1) A shipping company who fails to submit a verified Administrative

report of aggregated emissions data at company level in respect of a penalties

relating to

year in accordance with regulation 9 shall be subject to the imposition reporting

annual

of an administrative penalty as follows

emissions.

(a) one thousand euro (€1,000) and, or fifty euro (€50)

for each day of non-compliance, from the date of a notice given

by the Authority to the shipping company in the case of a

shipping company whose aggregated emissions data at company

level for that year are less than ten thousand (10,000) tonnes

carbon dioxide equivalents;

(b) five thousand euro (€5,000) and, or one hundred euro

(€100) for each day of non-compliance, from the date of a notice

given by the Authority to the shipping company in the case of a

shipping company whose aggregated emissions data at company

level for that year are equal to, or greater than ten thousand

(10,000) tonnes carbon dioxide equivalents and equal to, or less

than fifty thousand (50,000) tonnes carbon dioxide equivalents;

(c) ten thousand euro (€10,000) and, or three hundred

euro (€300) for each day of non-compliance, from the date of a

notice given by the Authority to the shipping company in the

case of a shipping company whose aggregated emissions data at

company level for that year are more than fifty thousand

(50,000) tonnes of carbon dioxide equivalents and equal to, or

less than five hundred thousand (500,000) tonnes carbon dioxide

equivalents;

(d) fifty thousand euro (€50,000) and, or six hundred

euro (€600) for each day of non-compliance, from the date of a

notice given by the Authority to the shipping company in the

case of a shipping company whose aggregated emissions data at

company level for that year are more than five hundred thousand

(500,000) tonnes of carbon dioxide equivalents.

(2) For the purposes of determining the administrative fine

under this regulation, where the aggregated emissions data at company

level of the shipping company are not known or are not reported or

where the Authority is satisfied that there is no reasonable possibility

that a verified quantity of aggregated emissions data at company level

shall be reported by the shipping company, the Authority may

determine the aggregated emissions data at company level from the

activities performed by the shipping company. The Authority shall use

the best available data and ensure that a conservative estimate is made

that does not underestimate emissions. The shipping company shall be

liable to the imposition of an administrative fine equal to the amounts

established in sub-regulation (1) in respect of the quantity of emissions

estimated in terms of this sub-regulation.

(1) A shipping company shall, by 30 th September of each

year, surrender a number of allowances that is equal to the total

aggregated emissions data at company level from maritime activities

listed in Schedule 1 during the preceding calendar year in accordance

with sub-regulation (3) and in accordance with the schedule in sub-

regulation (4).

(2) Allowances issued by a competent authority of another

Member State shall be recognized by the Authority for the purpose of

meeting a shipping company’s obligations under sub-regulation (1)

Provided that, where necessary, and for as long as is

necessary, in accordance with relevant decisions and regulations

adopted by the Commission pursuant to Directive 2003/87/EC, a

shipping company shall not surrender allowances that are issued by a

Member State in respect of which there are obligations arising from

Directive 2003/87/EC which are lapsing.

(3) A shipping company shall be liable to surrender allowances

in respect of

(a) fifty percent (50%) of the emissions from ships

performing voyages departing from a port of call under the

jurisdiction of a Member State and arriving at a port of call

outside the jurisdiction of a Member State;

(b) fifty percent (50%) of the emissions from ships

performing voyage departing from a port of call outside the

jurisdiction of a Member State and arriving at a port of call under

the jurisdiction of a Member State;

(c) one hundred percent (100%) of emissions from ships

performing voyages departing from a port of call under the

jurisdiction of a Member State and arriving at a port of call under

the jurisdiction of a Member State; and

(d) one hundred percent (100%) of emissions from ships

within a port of call under the jurisdiction of a Member State.

(4) Shipping companies shall be liable to surrender allowances

according to the following schedule

(a) forty percent (40%) of verified emissions reported for

2024 that would be subject to surrender requirements in

accordance with sub-regulation (1); and

(b) seventy percent (70%) of verified emissions reported

for 2025 that would be subject to surrender requirements in

accordance with sub-regulation (1); and

(c) one hundred percent (100%) of verified emissions

reported for 2026 and each year thereafter in accordance with

sub-regulation (1);

(5)

The national registry administrator shall cancel allowances

surrendered in accordance with sub-regulation (1);

(6) The national registry administrator shall cancel allowances

at any time at the request of a shipping company holding such

allowances.

(7) Surrender and cancellation of allowances shall be carried

out in accordance with the relevant decisions and regulations adopted

by the Commission pursuant to Directive 2003/87/EC.

(8) The Authority shall publish the name of any shipping

company which is in breach of the requirement to surrender sufficient

allowances under sub-regulation (1).

(9) Any shipping company who does not surrender sufficient

allowances by the 30th September of each year as required by sub-

regulation (1) to cover its emissions during the preceding year shall be

liable to the imposition of an administrative penalty of one hundred

euro (€100) for each tonne of carbon dioxide equivalent emitted, for

which the shipping company has not surrendered allowances. From 1st

January 2013, where, for the year in respect of which a shipping

company does not surrender sufficient allowances to cover emissions

during that year in accordance with sub-regulation (1), the annual

average Harmonized European Index of Consumer Prices published

indicates a percentage increase as compared to the Harmonized

European Index of Consumer Prices published for the previous year,

the administrative fine shall be increased by the same percentage. The

administrative penalty as revised pursuant to this sub-regulation shall

apply to subsequent years unless further increased in accordance with

the Harmonized European Index of Consumer Prices. For the purposes

of this sub-regulation, each allowance not surrendered by the shipping

company for a tonne of carbon dioxide equivalent emitted, shall be

considered as a separate contravention.

(10) The imposition of an administrative fine as prescribed in

sub-regulation (9) shall not release the shipping company from the

obligation to surrender an amount of allowances equal to those excess

emissions in respect of which the administrative penalty is paid when

surrendering allowances in relation to the following calendar year.

(11) Where a shipping company fails to surrender allowances in

accordance with sub-regulation (1), the national registry administrator

shall not allow the transfer of allowances or any other accounting units

out of the maritime operator holding account of that shipping company

until the shipping company complies with the requirement to surrender

allowances

Provided that the national registry administrator shall not

prevent the surrender of allowances in accordance with sub-regulation

(1) or the cancellation of allowances in accordance with sub-regulation

(6).

(12) By way of derogation from sub-regulation (3), a shipping

company may surrender five percent (5%) fewer allowances than its

verified emissions taking place until 31 December 2030 from ice class

ships, provided that these ships have ice-class IA or IA Super or an

equivalent ice class, established based on HELCOM Recommendation

25/7.

(13) By way of derogation from sub-regulation (3), a shipping

company shall not be required to surrender allowances in respect of

emissions released until 31 st December 2030 from voyages performed

by passenger ships, other than cruise passenger ships, and by ro-pax

ships, between a port of an island under the jurisdiction of a Member

State with no road or rail link with the mainland and with a population

of fewer than two hundred thousand (200,000) permanent residents

and a port under the jurisdiction of that same Member State, and from

activities, within a port, of such ships in relation to such voyages, as

may be listed in relevant decisions and regulations adopted by the

Commission pursuant to Directive 2003/87/EC.

(14) By way of derogation from sub-regulation (3), a shipping

company shall not be required to surrender allowances in respect of

emissions released until 31 st December 2030 from voyages performed

by passenger or ro-pax ships in the framework of a transnational public

service contract or a transnational public service obligation,

connecting two (2) Member States, and from the activities, within a

port, of such ships in relation to such voyages, as may be listed in

relevant decisions and regulations adopted by the Commission

pursuant to Directive 2003/87/EC.

(15) By way of derogation from sub-regulation (3), a shipping

company shall not be required to surrender allowances in respect of

emissions released until 31 st December 2030 from voyages between a

port located in an outermost region of a Member State and a port

located in the same Member State, including voyages between ports

within an outermost region and voyages between ports in the

outermost regions of the same Member State, and from activities,

within a port, of such ships in relation to such voyages.

(1) When the ultimate responsibility for the purchase of Provisions for

the fuel and, or the operation of the ship is assumed by a different transfer

costs of the EU

entity than the shipping company pursuant to a contractual ETS

shipping

arrangement, the shipping company shall be entitled to reimbursement company to

another entity.

from that entity for the costs arising from the surrender of allowances.

(2) "Operation of the ship" for the purposes of this regulation

means determining the cargo carried or the route and the speed of the

ship. The shipping company shall remain the entity responsible for

surrendering allowances as required under regulation 12 and for

overall compliance with the provisions of these regulations. A

shipping company shall comply with the obligations to surrender

allowances under regulation 12, notwithstanding the entitlement of

that shipping company to be reimbursed by the commercial operators

for the costs arising from the surrender.

Where a shipping company has failed to comply with the

surrender obligations for two (2) or more consecutive reporting

periods, and where other enforcement measures have failed to ensure

compliance, the Authority may, after consultation with the regulatory

authority responsible for maritime transport and after giving the

opportunity to the shipping company concerned to submit its

observations, request the Minister responsible for maritime transport

to issue an expulsion order.

Decisions related to the reports of emissions submitted in

accordance with regulation 9 shall be made available to the public in

accordance with the Freedom of Access to Information on the

Environment Regulations

Provided that any access to personal data shall be

made in accordance with the Data Protection Act and such

information covered by professional secrecy may not be

disclosed to any other person or authority except by virtue of the

applicable laws, regulations, administrative provisions and, or

the provisions of the Professional Secrecy Act

Provided further that without prejudice to this

regulation and to the obligation which may be imposed on the

Authority to disclose any information, the Authority shall not

disclose any confidential information or any parts thereof or any

other information provided in connection with the report which

should be treated as commercially confidential

Provided further that any information which shall be

treated as commercially confidential shall be made known at all

times to the Authority.

The Authority may require that submissions of reports

under regulation 9 are made in the form and manner and by means of

the medium as specified by it.

The revenue from the auctioning of allowances, after Revenue

deducting the audited costs to administer the EU ETS agreed between accruing

the auctioning

the Minister responsible for finance and the Authority, shall accrue to of allowances.

the Consolidated Fund.

The Administrative Review Tribunal shall have jurisdiction Right of appeal.

to hear and determine appeals from decisions of the Authority made

under these regulations in terms of the Administrative Justice Act, Cap. 490.

which appeal shall be filed by not later than twenty (20) days from the

service of the said Authority’s decision, wherein the aggrieved party

shall specify the reasons on the basis of which the said decision of the

Authority should be cancelled or modified

Provided that any party to the proceedings before the

Administrative Review Tribunal who feels aggrieved by a decision of

the said Tribunal, may appeal to the Court of Appeal on a point of law in

accordance with the Code of Organization and Civil Procedure.

Immediately after the last item of the Second Schedule to the Consequential

Administrative Justice Act there shall be added the words "European amendment.

Union Greenhouse Gas Emissions Trading System for Maritime

Transport Regulations S.L. 643.06, Superior/Inferior Competence".

Schedule 1

Regulations 1, 2, 3, 12

Categories of activities to which these regulations apply

Activities

Greenhouse Gases

Maritime transport

Carbon dioxide (CO 2 )

Maritime transport activities From 1 January 2026, methane (CH 4 )

covered by Regulation (EU) 2015/ and nitrous oxide (N O)

757 with the exception of the

maritime transport activities covered

by Article 2(1a) and, until 31 st

December 2026, Article 2(1b) of the

said Regulation

Schedule 2

Regulation 2

Greenhouse gases

Carbon dioxide (CO 2 )

Methane (CH 4 )

Nitrous Oxide (N 2 O)

Hydrofluorocarbons (HFCs)

Perfluorocarbons (PFCs)

Sulphur Hexafluoride (SF 6 )

€1.35