Policy Overview
The Monitoring and Reporting Regulation (MRR) is the operational bedrock of the EU ETS, dictating how thousands of industrial sites quantify and report their carbon footprint. The 2023-2024 revisions represent a breakthrough for the carbon management sector: CO2 that is verified as captured and permanently geologically stored is now exempt from the obligation to surrender emission allowances. This effectively anchors the financial value of CCS to the prevailing EU ETS price (approx. €60-100/t).
The 2024 updates expanded the scope to include maritime emissions and established new monitoring rules for non-pipeline transport, such as liquefied CO2 shipping—a critical requirement for hubs like Northern Lights. Furthermore, emissions permanently bound in certain CCU products are also now exempt. By enforcing the world’s most rigorous measurement standards (Tiers), the MRR ensures that every tonne of stored CO2 is physically and legally accounted for, providing the ‘data sovereignty’ needed for a credible European carbon management market.