EU update - Jan 2026
- Feb 5
- 3 min read
Updated: Feb 11
EU ETS Maritime: calls for corrective action and review process
From the start of 2026, shipping is facing a significantly more demanding and fragmented compliance landscape. The EU Emissions Trading System entered full implementation from January 2026, requiring 100 % surrender of allowances and expanding coverage beyond CO₂ to include methane and nitrous oxide. This marks the final step up from the 70% phase-in applied in 2025, increasing cost exposure and reporting complexity across most deep-sea and short-sea segments.
The first FuelEU Maritime compliance cycle also concludes in 2026, while the UK plans to introduce a separate maritime ETS from July.
At the same time, two key checkpoints are expected in 2026 at international level to seek a global agreement. However, with agreement on a global framework under the IMO still uncertain, this highlights the risk of continued regulatory fragmentation for shipowners and operators. During the EU Meeting of Transport Ministers in December 2025, Malta supported an AOB item by Italy that raised critical points regarding the practical impacts of the current framework. This initiative drew attention to the disproportionate effects of EU ETS Maritime on island and peripheral regions, transhipment hubs, short sea shipping, competitiveness, and cohesion. Malta highlighted the competitive imbalance created by the postponement of ETS for road transport and called for the withdrawal of EUETS once an IMO measure is in place and a a stop the clock until an international agreement is in place. MISA actively encouraged and supported the Maltese authorities in this initiative, working alongside the Malta Maritime Forum and the Malta Chamber of Commerce. Malta successfully conveyed a strong message to the Transport Council, reflecting the consistent concerns raised by MISA.
In parallel, in January, Interferry published a separate press release , reiterating similar concerns regarding the disproportionate impact on ferry and short sea shipping services. Interferry demanded corrective action to freeze compliance costs at 70%, aligning with the call for freezing costs due to the road transport ETS delay.
Lobbying efforts are underway in order to influence the upcoming EU Industrial Maritime Strategy and Ports Strategy- expected in March 2026. The industry wishes to see a clear message that the EU measures (EUETS and Fuel EU) are transitional and that it will withdraw the EU legislation when the IMO international measures are adopted. See the position of the European Shipowners | ECSA here. MISA is advocating through close engagement with Maltese authorities. See MISA submission to the consultation process of this strategy here. Looking ahead, a formal revision of the EU ETS maritime will also be launched this summer. This includes consideration of extending its scope to smaller vessels, potentially widening the system’s reach and including corrective measures for transhipment ports, island realities and short sea shipping. ECSA is currently gathering input from member associations to refine the industry’s core asks for this review. MISA is calling on its members to submit feedback to the Secretariat on the revisions they wish to see, to ensure your input informs the association's submission.
Innovation Fund: Opportunity for Maritime Decarbonisation
The 2025 Innovation Fund Call for Proposals (IF25 – Net Zero Technologies) has a substantial €2.9 billion total budget, financed through EU ETS revenues. This fund is open for applications and supports the large-scale deployment of innovative low-carbon technologies.
For the maritime sector, eligible actions include: energy efficiency technologies, sustainable alternative fuels, electrification and zero-emission propulsion (including wind-assisted propulsion), and innovative infrastructure for maritime transport, including EU container transhipment ports.
MISA attended the national information day in Malta and strongly encourages members to explore this funding opportunity and apply through the European Commission’s Innovation Fund portal. In parallel, MISA continues to advocate for changes to the Innovation fund's eligibility criteria highlighting that they are not fit for purpose especially for bulk-tramp shipping.
EMSA news:
MISA members are encouraged to read the following EMSA reports:
EU Mercosur agreement
On 9 January 2026, EU countries formally endorsed the trade deal between the EU and the South American trading bloc, including Argentina, Brazil, Paraguay and Uruguay. European Shipowners | ECSA welcomed the agreement.
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