Lloyd's Maritime and Commercial Law Quarterly
EUROPEAN UNION MARITIME LAW
Simon Baughen *
LEGISLATION
206. Directive (EU) 2023/959 of the European Parliament and of the Council of 10 May 2023 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.
As from 1 January 2026, the EU ETS will cover: 100 per cent of emissions from voyages between two ports within the European Economic Area (EEA) and emissions generated while ships are at an EEA port; and 50 per cent of emissions from voyages departing from or arriving at ports outside the EEA. In addition, methane (CH4) and nitrous oxide (N2O) emissions from maritime transport will also fall under the EU ETS.
207. Directive (EU) 2026/470 of the European Parliament and of the Council of 24 February 2026 amending Directives 2006/43/EC, 2013/34/EU, (EU) 2022/2464 and (EU) 2024/1760 as regards certain corporate sustainability reporting requirements and certain corporate sustainability due diligence requirements
PE/66/2025/INIT OJ L2026/470, 26.2.202
The Directive applies amendments to the Corporate Sustainability Due Diligence Directive and Corporate Sustainability Reporting Directives with entry into force on 18 March 2026.
The CSDDD will apply mandatory due diligence obligations in respect of actual and potential adverse human rights and environmental impact as regards: EU undertakings that have or, if they are an ultimate parent undertaking, their group has more than, €1.5 billion net turnover and more than 5,000 employees on average during the financial year.
Non-EU undertakings if they have or, if they are an ultimate parent undertaking, their group has more than €1.5 billion net turnover generated in the EU.
For franchising or licensing agreements in the EU in return for royalties with independent third-party companies both EU and non-EU undertakings, or if they are a parent undertaking, their group has entered into such undertakings, will be in scope if: (a) the royalties were more than €75 million; and (b) the undertaking generated more than €275 million net turnover in the EU.
The obligations extend to general areas across their chain of activities (including business partners) where adverse impacts are most likely to occur and to be most severe; and, following the scoping exercise, undertakings are required to conduct an in-depth assessment in the areas where adverse impacts were identified to be most likely to occur and most severe. When conducting the in-depth assessment, undertakings may prioritise
European Union Maritime Law
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