Legislation

CII is a measure of a vessel’s operational efficiency for CO2 emissions. It applies to all cargo and passenger vessels over 5,000 GT. Vessels are rated A (best) to E (worst), with stricter thresholds by 2030, requiring immediate improvement actions from vessels rated C to E.

The EU ETS requires shipping companies to monitor, report and verify greenhouse gas emissions and surrender EU Allowances (EUAs) for emissions covered by the scheme. It applies to cargo and passenger vessels of 5,000 GT and above, covering 100% of emissions from voyages and port calls within the EU/EEA, and 50% of emissions from voyages between EU/EEA and non-EU/EEA ports. Since 2026, the scheme includes CO₂, CH₄ and N₂O, with offshore vessels expected to join the scope from 2027.

FuelEU Maritime has been in force since 1 January 2025, requiring ships to progressively reduce the greenhouse gas intensity of the energy they use. The regulation applies to 100% of energy used on voyages and port calls within the EU/EEA, and 50% of energy used on voyages into or out of the EU/EEA.

The UK ETS requires shipping companies to monitor, report and verify greenhouse gas emissions and surrender UK Allowances (UKAs) for emissions covered by the scheme. It applies to vessels of 5,000 GT and above, covering 100% of emissions from domestic UK voyages and emissions generated while at berth in UK ports. The reporting period began on 1 July 2026, with annual reporting from 2027 and the first allowance surrender due on 30 April 2028.