Maritime Operator Holding Account – Considerations

EU ETS Maritime Operator Holding Account – Considerations

ATTN:    ALL FULL MEMBERS

               ALL TECHNICAL COMMITTEE MEMBERS

Dear Members,

Reference to EU ETS Maritime Operator Holding Account (MOHA) you may note below a summary of challenges encountered especially by third party management companies and non-EU registered owners’ basis on the feedback received from our members, along with some suggestions. Also attached some examples/case studies for reference.

Any additional feedback and experience sharing are highly appreciated by Monday 12^th February allowing us to further discuss any of these challenges with ECSA and EU.

Summary of Considerations opening MOHA

1. Bareboat Charterers/Bareboat Owners to assume ETS obligation.

• Bareboat charterers and bareboat owners lack a viable entity capable of assuming the required responsibility.

2. Allocation of Register Owners to Administration Authorities

• For Registered owners not listed under the published allocation list, with the majority of them not registered in the EU, the Allocation of Register Owners to Administration Authorities (AA) of the Member State of the vessel’s first port call will apply, as no record is currently available for the new shipping company.
• This results in one owner, with multiple register owning entities being allocated to several AA, creating multiple operational inefficiencies.
• Registered owners, assumed as new shipping companies for EU ETS, could be provided the option to be allocated to the AA of the ISM Manager, regardless of the registered owner being the responsible entity.

3. Compliance of a group or affiliated companies

• Vessels within the same group may be distributed to various charterers, ISM Managers, and subjected to different commercial and financial arrangements resulting into a significant number of MOHA accounts.
• Centralizing compliance through the holding company or a comparable structure, contingent upon the provision of sufficient proof documentation therefore consolidating compliance centrally back to the beneficiary ensures stability and significantly streamlines the management of obligations.

4. Requirements for Register Owners opening MOHA accounts

• Feedback received indicates a confusion and misalignment on the requirements of each administration authorities, especially for the requirements to entities that are not related to EU and cannot provide as a result many of the documents instructed under the amended 1122/2019 regulation. This is a major issue and key enabler of the Scheme, as the entities are not able to register in many Member States.
• Given that many non-EU registered owners are mandated to open MOHA, it becomes crucial to enable them to do so seamlessly.
• It is essential that the EU ensures that rules applied by all administrations are consistent and uniform across Member States to avoid significant discrepancies in the required documents.
• The seamless opening of Maritime Operator Holding Accounts (MOHA) is vital for non-EU registered owners.

Thank you

Kind regards

Emmanuel Vergetis