S.L. 643.6 Art. 12Surrender and cancellation of allowances. 

(1) A shipping company shall, by 30 September of each year, surrender a number of allowances that is equal to the total aggregated emissions data at company level from maritime activities listed in Schedule 1 during the preceding calendar year in accordance with sub-regulation (3) and in accordance with the schedule in sub-regulation (4).

(2) Allowances issued by a competent authority of another Member State shall be recognized by the Authority for the purpose of meeting a shipping company’s obligations under sub-regulation (1):

Provided that, where necessary, and for as long as is necessary, in accordance with relevant decisions and regulations adopted by the Commission pursuant to Directive 2003/87/EC, a shipping company shall not surrender allowances that are issued by a Member State in respect of which there are obligations arising from Directive 2003/87/EC which are lapsing.

(3) A shipping company shall be liable to surrender allowances in respect of:

(a) fifty percent (50%) of the emissions from ships performing voyages departing from a port of call under the jurisdiction of a Member State and arriving at a port of call TRADING SYSTEM FOR MARITIME TRANSPORT outside the jurisdiction of a Member State;

(b) fifty percent (50%) of the emissions from ships performing voyage departing from a port of call outside the jurisdiction of a Member State and arriving at a port of call under the jurisdiction of a Member State;

(c) one hundred percent (100%) of emissions from ships performing voyages departing from a port of call under the jurisdiction of a Member State and arriving at a port of call under the jurisdiction of a Member State; and

(d) one hundred percent (100%) of emissions from ships within a port of call under the jurisdiction of a Member State.

(4) Shipping companies shall be liable to surrender allowances according to the following schedule:

(a) forty percent (40%) of verified emissions reported for 2024 that would be subject to surrender requirements in accordance with sub-regulation (1); and

(b) seventy percent (70%) of verified emissions reported for 2025 that would be subject to surrender requirements in accordance with sub-regulation (1); and

(c) one hundred percent (100%) of verified emissions reported for 2026 and each year thereafter in accordance with sub-regulation (1);

(5) The national registry administrator shall cancel allowances surrendered in accordance with sub-regulation (1);

(6) The national registry administrator shall cancel allowances at any time at the request of a shipping company holding such allowances.

(7) Surrender and cancellation of allowances shall be carried out in accordance with the relevant decisions and regulations adopted by the Commission pursuant to Directive 2003/87/EC.

(8) The Authority shall publish the name of any shipping company which is in breach of the requirement to surrender sufficient allowances under sub-regulation (1).

(9) Any shipping company which does not surrender sufficient allowances by the 30th September of each year as required by sub-regulation (1) to cover its emissions during the preceding year shall be liable to the imposition of an administrative penalty of one hundred euro (€100) for each tonne of carbon dioxide equivalent emitted, for which the shipping company has not surrendered st allowances. From 1 January 2025, where, for the year in respect of which a shipping company does not surrender sufficient allowances to cover emissions during that year in accordance with sub-regulation (1), the annual average European Harmonised Index of Consumer Prices published indicates a percentage increase as compared to the latest European Harmonised Index of Consumer Prices published for the previous year, the administrative penalty shall be increased by the same percentage. The administrative penalty as revised pursuant to this sub-regulation shall apply to subsequent years unless further increased in accordance with the European Harmonised Index of Consumer Prices. For the purposes of this sub-regulation, each allowance not surrendered by the shipping company for a tonne of carbon dioxide equivalent emitted, shall be considered as a separate breach.

(10) The imposition of an administrative fine as prescribed in sub-regulation (9) shall not release the shipping company from the obligation to surrender an amount of allowances equal to those excess emissions in respect of which the administrative penalty is paid when surrendering allowances in relation to the following calendar year.

(11) Where a shipping company fails to surrender allowances in accordance with sub-regulation (1), the national registry administrator shall not allow the transfer of allowances or any other accounting units out of the maritime operator holding account of that shipping company until the shipping company complies with the requirement to surrender allowances:

Provided that the national registry administrator shall not prevent the surrender of allowances in accordance with sub-regulation

(1) or the cancellation of allowances in accordance with sub-regulation (6).

(12) By way of derogation from sub-regulation (3), a shipping company may surrender five percent (5%) fewer allowances than its verified emissions taking place until 31 December 2030 from ice class ships, provided that these ships have ice-class IA or IA Super or an equivalent ice class, established based on HELCOM Recommendation 25/7.

(13) By way of derogation from sub-regulation (3), a shipping company shall not be required to surrender allowances in respect of emissions released until 31st December 2030 from voyages performed by passenger ships, other than cruise passenger ships, and by ro-pax ships, between a port of an island under the jurisdiction of a Member State with no road or rail link with the mainland and with a population of fewer than two hundred thousand (200,000) permanent residents and a port under the jurisdiction of that same Member State, and from activities, within a port, of such ships in relation to such voyages, as TRADING SYSTEM FOR MARITIME TRANSPORT may be listed in relevant decisions and regulations adopted by the Commission pursuant to Directive 2003/87/EC.

(14) By way of derogation from sub-regulation (3), a shipping company shall not be required to surrender allowances in respect of emissions released until 31st December 2030 from voyages performed by passenger or ro-pax ships in the framework of a transnational public service contract or a transnational public service obligation, connecting two (2) Member States, and from the activities, within a port, of such ships in relation to such voyages, as may be listed in relevant decisions and regulations adopted by the Commission pursuant to Directive 2003/87/EC.

(15) By way of derogation from sub-regulation (3), a shipping company shall not be required to surrender allowances in respect of st emissions released until 31 December 2030 from voyages between a port located in an outermost region of a Member State and a port located in the same Member State, including voyages between ports within an outermost region and voyages between ports in the outermost regions of the same Member State, and from activities, within a port, of such ships in relation to such voyages.