EU ETS maritime reporting expands to methane and nitrous oxide as compliance reaches full phase-in

The European Commission’s 2026 Climate Action Progress Report, published in early November, reports that the EU Emissions Trading System (EU ETS) now covers methane (CH₄) and nitrous oxide (N₂O) emissions from maritime transport, in addition to carbon dioxide. The Commission states that the expanded gas scope applies from 2026.

This is a material operational development for shipping companies responsible for vessels of 5,000 gross tonnage and above that call at EU, Icelandic or Norwegian ports. The Commission’s maritime ETS guidance states that the scheme generally covers 100% of emissions on voyages between EEA ports and while ships are in port, and 50% of emissions on voyages between an EEA port and a non-EEA port. The reporting and allowance obligation remains attached to the shipping company as defined under the EU framework, rather than automatically to the registered owner.

The newly published report adds a useful quantified baseline: shipping companies reported 87.4 million tonnes of CO₂-equivalent for 2025 under the EU ETS, based on emissions reported and verified through the broader MRV system. It also records 2025 MRV emissions of 2.4 million tonnes CO₂-equivalent for methane and 2.2 million tonnes CO₂-equivalent for nitrous oxide. Those figures do not, by themselves, establish the allowance cost for any individual ship, route or operator; fuel type, engine technology, voyage pattern, allocation arrangements and verified emissions remain determinative.

The Commission separately confirms the scheduled phase-in: allowances corresponding to 70% of verified 2025 emissions are due during 2026, while emissions generated from 2026 onward are subject to a 100% surrender requirement under the EU ETS. This makes data governance more commercially consequential for chartering, voyage accounting and contractual cost allocation.

**Why this matters:** The regulatory change is not a new fuel ban and does not prove that every methane- or nitrous-oxide-emitting vessel will face the same exposure. However, the inclusion of these gases means that bunker documentation, engine and fuel-consumption records, MRV controls, and owner–manager–charterer emissions clauses require closer reconciliation. This is particularly relevant to LNG-fuelled tonnage, dual-fuel operations and vessels with differing operational profiles inside and outside the EEA. This is analysis based on the Commission’s confirmed scope and reporting data, not a legal interpretation of a specific fixture or compliance case.