News 16 Mar, 2015

EU - Monitoring, Reporting and Verification of CO2 Emissions

In 2013 the European Union (EU) drafted a proposal to amend EU Regulation 525/2013 and implement requirements for the Monitoring, Reporting and Verification (MRV) of carbon dioxide (CO2) emissions from vessels. This was the first of three steps proposed by the EU to reduce emissions of greenhouse gases. The second step in the EU plan is to set greenhouse gas targets for the maritime transport sector, with the third step being the introduction of further requirements, including market-based measures, in the medium to long term. The proposed regulations will apply to all vessels over 5,000 gross tonnes regardless of flag state making one or more visits to an EU port in a calendar year.

The legislation will require the company holding the ISM Document of Compliance (DOC) to have in place an approved monitoring plan and to submit independently verified reports to the EU detailing the annual CO2 emissions for each vessel that has called at one or more EU ports. Information regarding the vessel’s attained Energy Efficiency Design Index (EEDI) or Estimated Index Value (EIV), as applicable, will also be required. The EU intends to analyse and use this information to shape future legislation affecting emissions from vessels.

These regulatory amendments have recently been passed by the European Council and are currently making their way through the EU legislative process. They are due to be approved by the European Parliament shortly. The regulations are expected to enter into force during 2015 in accordance with a proposed implementation timetable as follows:

01 July 2015

New regulations enter into force.

31 August 2017

ISM DOC holder’s proposed monitoring plan to be prepared and submitted for verification.

01 January 2018

Commence per-voyage monitoring of CO2 emissions.

31 April 2019

A verified emissions report for each vessel to be submitted to the EU and the flag state, and by 31 April each year thereafter.

30 June 2019

Vessels will need to carry a valid Document of Compliance issued by an independent verifier confirming compliance with the regulations for the   relevant reporting period. The DOC is to be made available for inspection in EU ports.

The EU plans to publish emissions reports for all ships, including details of fuel consumption, CO2 emissions and EEDI / EIV on 30 June each year.

It is anticipated that Classification Societies will undertake the task of checking proposed monitoring plans and verifying emissions data. The EU is planning to produce electronic templates for the preparation of monitoring plans, reports and verification in due course.

The draft regulations also state that if a vessel fails to comply with the annual reporting requirements either initially or in a subsequent year, Port State Control may issue an expulsion order prohibiting the vessel from entering any port in an EU Member State until the reporting obligations have been fulfilled.

Members requiring further guidance should contact the Loss Prevention Department.