Merchant Shipping Notice: Enhanced maritime emissions trading regulations in Malta

Amendments to the EU Greenhouse Gas Emissions Trading System for Maritime Transport.

Strengthening compliance and administrative processes in Malta's maritime emissions trading regulations.

On 22 July 2025, the Minister responsible for climate action policy enacted the European Union Greenhouse Gas Emissions Trading System for Maritime Transport (Amendment) Regulations, 2025 (the ‘Regulation’) further transposing Directive 2003/87/EC.

The Regulation amends the European Union Greenhouse Gas Emissions Trading System for Maritime Transport Regulations (the ‘Principal Regulation’). The amendments primarily focus on clarifying the scope and applicability, reinforcing penalties for non-compliance, and ensuring administrative processes are aligned with updated directives.

Initially, the Principal Regulation established the EU system for greenhouse gas emissions allowance trading for maritime activities listed in Schedule 1. The 2025 Regulation further specifies the applicability to shipping companies registered in Malta, or those with the greatest number of port calls in Malta, or those starting their first voyage in Malta within the scope of Directive 2003/87/EC. It clarifies that Malta remains the administering authority regardless of subsequent changes in the shipping company's registration or activities until updated by the Commission.

Regarding penalties for non-compliance, the Principal Regulation introduced administrative penalties for failing to submit verified emissions data, with fines based on the quantity of emissions. The 2025 Regulation specifies an administrative penalty of €100 per tonne of CO2 equivalent emitted without surrendered allowances, adjusted annually starting from 1st January 2025, based on the European Harmonised Index of Consumer Prices. This amendment reinforces the requirement for shipping companies to surrender allowances equal to their emissions by 30th September each year, with penalties for non-compliance, and introduces a penalty increase mechanism based on consumer price index changes. Additionally, the terminology has been updated to refer to each instance of non-compliance as a "breach" rather than a "contravention.".

These changes reinforce Malta's commitment to effective climate action and ensure shipping companies are held accountable for their emissions, contributing to the EU's broader goals of reducing greenhouse gas emissions and combating climate change.

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