ABS: Biofuels under the IMO and EU regulatory framework

The EU has updated its maritime emissions rules to include shipping in the EU Emissions Trading System (EU ETS). To support this change, Regulation (EU) 2023/957 and Delegated Regulation (EU) 2023/2776 have introduced new reporting requirements under the EU MRV system (Monitoring, Reporting and Verification).

These updates require shipping companies to report total greenhouse gas emissions, including specific rules for sustainable biofuels. Normally, a standard CO2 emission factor is used, but biofuels that meet EU sustainability criteria under the Renewable Energy Directive (RED II) may be treated differently.