EUROPEAN UNION GREENHOUSE GAS EMISSIONS TRADING SYSTEM FOR MARITIME TRANSPORT REGULATIONS
Table of Provisions (19)
Statutory Text (19 Articles)
TRADING SYSTEM FOR MARITIME TRANSPORT
SUBSIDIARY LEGISLATION 643.06
EUROPEAN UNION GREENHOUSE GAS EMISSIONS
TRADING SYSTEM FOR MARITIME TRANSPORT
REGULATIONS
22nd November, 2024
LEGAL NOTICE 316 of 2024, as amended by Legal Notice 143 of 2025.
(1)
The title of these regulations is the European
Union Greenhouse Gas Emissions Trading System for Maritime
Transport Regulations.
(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
TRADING SYSTEM FOR MARITIME TRANSPORT
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/
TRADING SYSTEM FOR MARITIME TRANSPORT
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
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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
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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.
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
Provided that Malta shall remain the administering
authority in respect of a shipping company, regardless of subsequent
changes in the shipping company’s registration or activities, until
those changes are reflected in an updated list adopted by the
Commission pursuant to Article 3gf of Directive 2003/87/EC
(b)
any other relevant body corporate on which these
regulations impose any obligation.Auctioning of
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allowances.
(1)
The quantity of allowances that are not allocated
free of charge, as determined for Malta in accordance with Directive
2003/87/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
from EU ETS auctioning revenues shall ensure the visibility of such
source of funding.
(1)
A shipping company shall have a maritime
operator 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
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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.
From the year 2025, a shipping company shall, by 31 st
(2)
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
necessary on any report submitted by a shipping company pursuant to
regulation 9.
(2)
The Authority shall not accept a report of aggregated
emissions data at company level which has not been verified as
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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 report of aggregated emissions data at company level in
respect of a year in accordance with regulation 9 shall be subject to the
imposition of an administrative penalty as follows
(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
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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.
A shipping company shall, by 30 th September of
(1)
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
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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 which 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
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emitted, for which the shipping company has not surrendered
allowances. From 1 st January 2025, 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 European Harmonised Index of Consumer
Prices published indicates a percentage increase as compared to the
latest European Harmonised Index of Consumer Prices published for
the previous year, the administrative penalty 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 European Harmonised 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
breach.
(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
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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 the fuel and, or the operation of the ship is assumed by a different
entity than the shipping company pursuant to a contractual
arrangement, the shipping company shall be entitled to reimbursement
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.
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Decisions related to the reports of emissions submitted in Access to
accordance with regulation 9 shall be made available to the public in information,
accordance with the Freedom of Access to Information on the professional
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
deducting the audited costs to administer the EU ETS agreed between
the Minister responsible for finance and the Authority, shall accrue to
the Consolidated Fund.
The Administrative Review Tribunal shall have
jurisdiction to hear and determine appeals from decisions of the
Authority made under these regulations in terms of the Administrative
Justice Act, 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.
Schedule 1
Regulations 1, 2, 3, 12
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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 2 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 )