🚨 MAJOR CHANGE FOR 2026
Starting January 1, 2026, CH₄ (methane) and N₂O (nitrous oxide) are included in EU ETS monitoring and reporting requirements. All vessels must track these greenhouse gases in addition to CO₂. LNG-powered vessels will face significantly higher compliance costs due to methane slip.
Appoint MRV Administrator
Designate responsible person for monitoring, reporting, and verification
Identify all vessels with IMO numbers ≥5000 GT
Vessels must be registered and subject to EU ETS requirements
Update monitoring plans for CH₄ and N₂O
NEW FOR 2026: Systems must track methane and nitrous oxide emissions
Document all voyages with times, ports, and fuel consumed
Required for each EU port call
Install/verify fuel consumption monitoring systems
Must comply with IMO DCS and EU MRV requirements
Implement methane slip monitoring (LNG vessels)
NEW FOR 2026: Critical for LNG-powered vessels to track CH₄ emissions
Calculate CO₂e emissions for each voyage
Use CO₂ equivalent calculations including CH₄ (GWP 28) and N₂O (GWP 265)
Prepare annual emissions report (due March 31, 2027)
Report covering all 2026 emissions (CO₂, CH₄, N₂O)
Determine 2026 EU ETS allowance requirements
Calculate based on 70% of 2025 emissions (CO₂, CH₄, N₂O)
Calculate annual cost exposure
Based on EUA price range €60-150/ton CO₂e (current mid-range ~€90-120)
Factor in CH₄/N₂O cost impact
LNG vessels: methane slip typically adds 20-30% to total CO₂e emissions
Set aside compliance budget for 2026
Allocate funds for allowance purchases and verification costs
Decide purchase strategy
Options: upfront purchase, monthly averaging, futures contracts
Monitor EUA price trends and volatility
Track carbon market to optimize purchase timing
Understand FuelEU GHG intensity requirements
2026 target: 89.34 gCO₂e/MJ (2% reduction from baseline)
Calculate combined EU ETS + FuelEU cost exposure
Separate but overlapping regulations with different penalty structures
Optimize fuel mix strategy
Consider LNG, biofuels, methanol, or ammonia to reduce both ETS and FuelEU costs
Evaluate LNG viability with CH₄ costs
NEW: Methane slip now monetized under EU ETS; reassess LNG economics
Calculate fleet CII ratings for 2026
Annual carbon intensity indicator ratings (A-E scale)
Identify at-risk vessels (D/E ratings)
Vessels with poor ratings require corrective action plans
Plan energy efficiency upgrades
Speed optimization, hull cleaning, propeller polishing, wind-assist
Align CII improvements with EU ETS cost reduction
Better CII ratings = lower fuel consumption = lower ETS costs
Get the Full Compliance Package
Download our complete EU ETS + FuelEU + CII compliance guide with cost optimization strategies, emission calculation templates, and vendor recommendations.