Monthly Archives: April 2023

On 25 April 2023 the Council of the EU adopted a series of laws which will provide for the inclusion of maritime transport within the EU Emission Trading Scheme (EU ETS). The vote in the Council is the last step of the decision-making procedure, a procedure initiated in 2013 when the Commission adopted a strategy for progressively integrating maritime transport emissions into the European Union’s policy for reducing greenhouse gas emissions. The Directive of the European Parliament and of the Council amending Directive 2003/87/EC establishing a system for greenhouse gas emission allowance trading within the Union and Decision (EU) 2015/1814 concerning the establishment and operation of a market stability reserve for the Union greenhouse gas emission trading system (2023) provides the necessary amendments “to include maritime transport activities in the EU Emissions Trading System (EU ETS) in order to ensure that those activities contribute their fair share to the increased climate objectives of the Union as well as to the objectives of the Paris Agreement”, while the Regulation of the European Parliament and of the Council amending Regulation (EU) 2015/757 in order to provide for the inclusion of maritime transport activities in the EU Emissions Trading System and for the monitoring, reporting and verification of emissions of additional greenhouse gases and emissions from additional ship types (2023) provides the necessary amendments to the MRV Regulation to take account of said extension of the EU ETS to maritime transport and related updates, namely “to provide for monitoring, reporting and verification rules that are necessary for an extension of the EU ETS to maritime transport activities and to provide for the monitoring, reporting and verification of emissions of additional greenhouse gases and emissions from additional ship types” (Recitals 8 & 12, emphasis added). Once published in Official Journal of the EU the directive and regulation will be legally binding.

Of note in respect of its relations to developments of a global market-based mechanism through the International Maritime Organization (IMO):

Efforts to limit global maritime emissions through the IMO are under way and should be encouraged, including the rapid implementation of the Initial IMO Strategy on Reduction of Greenhouse Gas Emissions from Ships, adopted in 2018, which also refers to possible market-based measures to incentivise greenhouse gas emission reductions from international shipping. However, while recently there has been progress in the IMO, this has so far not been sufficient to achieve the objectives of the Paris Agreement. Given the international character of shipping, it is important that the Member States and the Union within their respective competences work with third countries to step up diplomatic efforts to strengthen global measures and make progress on the development of a global market-based measure at IMO level.

Directive 2003/87/EC (as amended April 2023), Recital 19.

Directive 2003/87/EC (as amended April 2023), Article 3gg(1) addresses the EU response “in the event of the adoption by the International Maritime Organization (IMO) of a global market-based measure to reduce greenhouse gas emissions from maritime transport”, while Article 3gg(2) addresses the EU response “in the event that the IMO does not adopt by 2028 a global market-based measure to reduce greenhouse gas emissions from maritime transport in line with the objectives of the Paris Agreement and at least to a level comparable to that resulting from the Union measures taken under this Directive”.

A Special Session of the Indian Ocean Tuna Commission (SS6) was held 3-5 February 2023 (Kenya), with the stated objective “the aim of the Special Session is to adopt a conservation and management measure on Fish Aggregating Devices”. This followed inaction on the issue at the 26th Session in May 2022. The 6th Special Session (IOTC Circular 2023-09) adopted Resolution 23-01 On management of Anchored Fish Aggregating Devices (AFADs) and Resolution 23-02 On Management of Drifting Fish Aggregating Devices (DFADs) in the IOTC area of competence, the latter adopted by a two-thirds majority vote.

Pursuant to Article IX of the IOTC Agreement, a number of Members have since formally objected to Resolution 23-02, namely Comoros (IOTC Circular 2023-11), Seychelles (IOTC Circular 2023-19), European Union (IOTC Circular 2023-26), Oman (IOTC Circular 2023-12), Philippines (IOTC Circular 2023-20), Kenya (IOTC Circular 2023-14), and Somalia (IOTC Circular 2023-18; IOTC Circular 2023-22 objection since withdrawn). In response to some of the statements made on Resolution 23-02, Indonesia circulated a statement “countering the misinterpretation of Resolution 23-02”, its statement representing a shared understanding by “a number” of the other Resolution 23-02 co-sponsoring states (IOTC Circular 2023-24).

The previously reported Black Sea Grain Initiative foresees a renewal of 120 days, as previously occurred, in Paragraph 5(H):

H. This initiative will remain in effect for 120 days from the date of signature by all Parties and can be extended automatically for the same period, unless one of the Parties notifies the other of the intent to terminate the initiative, or to modify it.

Initiative on the Safe Transportation of Grain and Foodstuffs from Ukrainian Ports

On 14 March 2023, the deadline of possible expiry, the Black Sea Grain Initiative was renewed by the parties, with the UN Secretariat continuing to reference the previously reported MoU on Russian Food Products and Fertilizers between Russia and UN Secretariat, which expires 22 July 2025 (Paragraph 6). The UN Secretary-General press release is silent on the length of extension, however the Ministry for the Restoration of Ukraine refers to a 120 days extension, while the Ministry of Foreign Affairs of Russia refers to 60 days extension, with the possibility that after 60 days there will be a further decision on extension or “[Russia’s] participation in the Black Sea Initiative will be suspended”.