This browser is not actively supported anymore. For the best passle experience, we strongly recommend you upgrade your browser.
viewpoints
Welcome to Reed Smith's viewpoints — timely commentary from our lawyers on topics relevant to your business and wider industry. Browse to see the latest news and subscribe to receive updates on topics that matter to you, directly to your mailbox.
| 1 minute read

Carbon Conscious: EU ETS update - The list of shipping companies

Authored by Antonia Panayides and Grace Durnall.

As per the Commission Implementing Decision (CID), the Commission has now established a list of shipping companies and their corresponding administering authority (the “List”).

The List is far from the complete picture whereby even if your company is not included on the List, it could still be subject to EU ETS compliance. Further, for companies included on the List, the Commission has stated thatsome of the entities in the list might not fall under the new definition of ‘shipping company’ laid down…[in] Directive 2003/87/EC”.

The “new” definition of ‘shipping company’ set out in the Implementing Directive provides that by default the shipowner is the ‘shipping company’ unless a mandate is provided. In light of this definition, until such mandates are in place, the registered shipowner would be the shipping company. As such, there was an expectation that the List would include far more registered shipowners. 

Questions arise as to whether mandates are still required if, for example, a registered shipowner (who does not appear on the List) was to mandate a technical manager or bareboat charterer (who is on the List). Until we hear otherwise from the EU Commission, if responsibility for EU ETS compliance is to shift from a registered shipowner to a bareboat charterer or manager responsible for ISM compliance, a mandate is required. The mandate should be in accordance with the Implementing Directive. Where the registered shipowner has mandated EU ETS compliance to another entity, “the organisation or person shall provide its administering authority in respect of a shipping company with a document clearly indicating that it has been duly mandated by the shipowner to comply with the EU ETS obligations.” 

Shipping companies should identify their administering authority and request the opening a Maritime Operator Holding Account (“MOHA”). The FAQs on the EU Commission’s website have the following deadlines for requesting the opening of a MOHA:

  1. For shipping companies included on the List: within 40 working days of the publication of the List. 
  2. For shipping companies not on the List: within 65 working days of the first voyage falling within scope of the Directive. 

For more information on ensuring compliance with EU ETS, please get in touch with Antonia here.

The List is far from the complete picture whereby even if your company is not included in the List, it could still be subject to EU ETS compliance. Further, for companies included in the List, the Commission has stated that “some of the entities in the list might not fall under the new definition of ‘shipping company’ laid down…[in] Directive 2003/87/EC”.

Tags

carbon conscious, esg, transportation