Shipping companies falling within scope of Maritime EU ETS must be registered in the Union Registry with an active MOHA. This account is required to submit verified emissions reports by 31 March and surrender allowances on 30 September 2025 (see our previous articles on key requirements and key compliance deadlines under EU ETS). Without a proper registration in the Union Registry with an active MOHA, verification societies (i.e. class societies such as Lloyds, DNV, RINA and so forth) will not be able to submit verified emissions reports to administering authorities in each jurisdiction. This will inevitably create an additional backlog in compliance – the absence of MOHAs prevents proper reporting and verification of emissions as well as surrender of allowances. In the worst-case scenario, this could lead not only to non-compliance penalties under EU ETS (€100 per tonne of unreported carbon and the obligation to surrender missing allowances later) but also to operational restrictions, such as expulsion from or detention in port if shipping companies continue to run into difficulties with registration, reporting or surrender of allowances for two or more consecutive periods. Liability is on a company-wide basis, so if one vessel belonging to a shipping company is arrested in port, then all that company’s fleet could be subject to restrictions or suspension of operations.

KEY TAKEAWAYS

It is important to keep a clear paper trail of all communications with the relevant registries to demonstrate efforts being made to open MOHAs. The same applies to any communications with administrative authorities in each jurisdiction as well as with class societies who are awaiting MOHA details to be able properly to verify emissions reports and submit them to administering authorities.  Whilst there will be room to argue that any non-compliance arose due to administrative delays in the event of any penalties being levied, if there is no evidence of practical steps being taken to resolve this, any prospects of successfully mounting such defences will be considerably undermined. WFW is liaising with registries in different jurisdictions on a daily basis and helping clients to circumvent and surmount any administrative and regulatory obstacles whilst regularising any potential non-compliance.