European Affairs Report Summer Edition (July-August)

This Summer edition of our EU affairs report examines the main European regulatory and policy developments affecting the maritime sector during July and August 2026.Topics covered include safety regulation, climate policy, carbon pricing, alternative fuels, security, and EU financing instruments. 

Regulatory Updates 

The main regulatory development was the Commission's long-awaited proposals to revise the 2023/959 EU ETS Directive, expanding and strengthening its scope in the maritime sector. An accompanying proposal addresses the 2023/1805 EU regulation (Fuel EU Maritime) and MRV regulations, streamlining the emissions reporting and verification framework. Both sets of proposals will have to go through the legislative procedure before formally being adopted by the European Parliament and the Council of the European Union. 

 Additional updates include revised marine-equipment requirements and codified Ro-Ro passenger-ship stability rules. The Commission also provided implementation guidance for the EU Methane Regulation and updated the timeline for the expected publication of the Methane Transparency Database. 

Public Policies 

The Commission advanced maritime safety through a report on EMSA's 2025 activities; strengthened security by expanding EU sanctions against Russia and launching an action plan on cybersecurity and AI. It pursued environmental governance through a consultation on the "Do No Significant Harm" principle, feedback on RED transposition, and the forthcoming European Ocean Research and Innovation Strategy. 

On the international stage, the EU published its position on IMO Net-Zero Framework negotiations, supporting a predictable, enforceable, and globally applicable approach aligned with achieving net-zero shipping emissions by 2050. 

Financing Instruments 

The Commission continues its effort to support investments in decarbonization technologies, including electrification, hydrogen production, hydrogen-powered vessels offshore wind and renewable methanol. It also published a report on the performance of the Innovation Fund.