Shipping companies that fail to surrender allowances are liable to an excess emissions penalty of EUR 100 (corrected for inflation) per tonne of CO2 equivalent and are still liable for the surrender of the required allowances. The names of the penalized companies are also disclosed to the public.
Furthermore, in case a shipping company has failed to comply with surrendering its obligations for two or more consecutive reporting periods, and where other enforcement measures have failed to ensure compliance, the competent authority of the EU Member State of the port of entry may, after giving the opportunity to the company concerned to submit its observations, issue an expulsion order. In practice, this means that every EU Member State, with the exception of the flag state, is required to refuse entry to the ships under the responsibility of the shipping company concerned into any of its ports, until the company fulfils its surrender obligations.
Where such a ship flies the flag of an EU Member State and enters or is found in one of its ports, the concerned EU Member State will, after giving the opportunity to the concerned company to submit its observations, detain the ship until the company fulfils its surrender obligations.