EU Weighs Shipping ETS Reforms as FuelEU Maritime Reporting Simplification Advances

European lawmakers are considering changes to the European Union’s carbon compliance framework for shipping, including proposed amendments to the EU Emissions Trading System (EU ETS) and measures to streamline reporting requirements under FuelEU Maritime.

Bureau Veritas’ September 2026 European Affairs Report outlines ongoing discussions in the European Parliament and Council on ETS reforms, while also highlighting proposals to reduce duplication between the EU’s maritime Monitoring, Reporting and Verification (MRV) system and FuelEU Maritime requirements.

Proposed measures target ETS evasion risks

One area under discussion is the potential tightening of rules designed to prevent ships from avoiding EU carbon costs by using nearby non-EU transhipment ports.

According to Bureau Veritas report, draft amendments being considered by the European Parliament would lower the transhipment threshold used under the rules from 65% to 50%. The proposals would also extend the relevant port-distance criterion to 150 nautical miles.

Lawmakers are additionally considering broader ETS coverage for certain smaller vessels and offshore activities. These measures remain proposals and would be subject to further negotiations before any changes are adopted.

EU considers aligning maritime reporting requirements

Alongside the ETS reform discussions, policymakers are examining ways to better coordinate reporting and verification requirements under the EU MRV system, EU ETS and FuelEU Maritime.

The three frameworks rely on overlapping operational and emissions data. Aligning their reporting and verification cycles could therefore reduce duplication and simplify compliance processes for shipping companies.

However, the details of any revised reporting framework remain under discussion and could change as negotiations progress.

Shipping ETS requirements expand in 2026

The reform discussions come as the EU ETS expands its emissions coverage for shipping.

From 2026, methane and nitrous oxide emissions are included within the maritime ETS alongside carbon dioxide. At the same time, shipping companies are required to surrender allowances covering 100% of emissions falling within the scheme’s scope for the 2026 reporting year, with those allowances due to be surrendered in 2027.

The requirement has increased progressively, following the obligation to cover 70% of relevant 2025 emissions through allowances surrendered in 2026.

The maritime ETS continues to operate on a route-based basis and applies irrespective of a vessel’s flag. In general, it covers emissions from voyages between covered European ports, as well as 50% of emissions from voyages between covered European ports and destinations outside the scheme’s geographic scope.