Maritime decarbonisation: five questions for 2025

Owners and charterers - question two

As we step into 2025 fast-paced regulatory, technological and contractual change continues to drive maritime decarbonisation, with numerous fresh challenges emerging day-to-day.

To assist you in navigating these changing times, by focusing on the practical issues likely to impact your business directly, we are opening 2025 by illuminating five key maritime decarbonisation question.

This week we ask: when selling a vessel that has been trading in Europe, do you need to consider continuing obligations under the EU MRV and EU ETS?

Legal context

Subject to specific exemptions, vessels of and over 5,000GT carrying cargo and passengers for commercial purposes have been within the EU MRV regime since 1 January 2018 and within the EU ETS regime since 1 January 2024. Offshore vessels and commercial cargo vessels of and over 400 GT joined the EU MRV on 1 January 2025.

Both the EU MRV and EU ETS contain provisions imposing obligations in the event of a change of company (which will often arise upon the sale of a vessel), including obligations which fall on the outgoing company.

Why does it matter

Penalties for non-compliance with the EU MRV and EU ETS include the publication of names, financial penalties and, following two years consecutive non-compliance, expulsion of vessels from, or detention in, Member States. Non-compliance may also breach contractual warranties.

Upon the sale of a vessel there is a risk that ongoing obligations may be overlooked, leading to non-compliance and exposing parties to statutory penalties and/or contractual claims.