European Regulation “MRV”

Luis Guerrero2nd November 2015

THE EU MRV REGULATION – GENERALOBJECTIVE OF THE MRV REGULATIONSCOPE OF THE MRV REGULATIONMETHOD FOR MONITORING CO2 EMISSIONSCALCULATION OF CO2 EMISSIONSDETERMINATION OF THE FUEL CONSUMPTIONSMONITORING OF OTHER RELEVANT INFORMATIONDATA FOR THE MONITORING ON A “PER VOYAGE” BASISDATA FOR THE MONITORING ON AN ANNUAL BASISMONITORING PLANEMISSIONS REPORTCOMPLIANCE CYCLE FOR MRV REGULATIONSIMPLEMENTATION SCHEDULE

CONTENTS

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The EU MRV Regulation - General

►MRV Regulation is:the EU Regulation 2015/757 on the monitoring, reporting and verification of carbon dioxide emissions from maritime transport

►Adoption:It was adopted by the European Parliament and the Council of the European Union on 29 April 2015.

►Entry into force: on 1 July 2015.

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Objective of the MRV Regulation

► The EU's strategy is to progressively integrate maritime emissions into the EU's policy for reducing its domestic greenhouse gas emissions.

►MRV Regulation focuses on CO2 as it is the predominant greenhouse gas emission from ships.

► The strategy consists of three consecutive steps:• Monitoring, reporting and verification of CO2

emissions from large ships using EU ports

• Greenhouse gas reduction targets for the maritime transport sector

• Further measures, including market-based measures (MBMs), in the medium to long term.

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Objective of the MRV Regulation (cont.)

► The EU MRV Regulation creates a framework for collecting and publishing verified annual data on CO2 emissions and energy-efficiency from all large ships that use EU ports, irrespective of where the ships are registered.

► From January 2018 onwards, CO2 emissions and energy efficiency will have to be: monitored and reported by companies,

verified par an independent verifier.

►A valid document of compliance issued by the verifier will have to be carried on board of ships subjected to MRV.

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Scope of the MRV Regulation

► The MRV Regulation applies to ships above 5 000 gross tonnage (with some exceptions). It should be noted that ships below 5000 GT represent about 45% of the fleet, but only 10% of the total EU related CO2 emissions.

►CO2 emissions to be considered are those released by ships: At sea during voyages from and to a port under the jurisdiction of a Member State and

At birth within ports of call under the jurisdiction of a Member State.

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Method for monitoring CO2 emissions

► For each of their ships, companies will have to:

determine the CO2 emissions in accordance with one of the permitted methods, and

monitor other relevant information.

►Monitoring is to be carried out on a “per voyage” basis and on an annual basis.

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Calculation of CO2 emissions

►CO2 emissions = Fuel consumption x emission factor

Where:

Fuel consumption includes fuel consumed by main engines, auxiliary engines, gas turbines, boilers and inert gas generators. Fuel consumption within port at berth is to be calculated separately.

Emission factor is the factor for conversion of the fuel consumption into CO2 emissions. Default values are used in principle unless the company uses data on fuel quality from the Bunker Delivery Note.

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Determination of the fuel consumptions

► For each ship and each voyage, the actual fuel consumption has to be calculated based on one of the following method:

(a) Bunker Fuel Delivery Note (BDN) and periodic stocktakes of fuel tanks;

(b) Bunker fuel tank monitoring on board;

(c) Flow meters for applicable combustion processes;

(d) Direct CO2 emissions measurements. If this method is used, the fuel consumptions have to be calculated from the CO2 emissions and the relevant emission factors.

► Any combination of these methods may also be used if this enhances the overall accuracy of the measurement. Source: Krill

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Monitoring of other relevant information

►Monitoring is to be performed:

► on a “per voyage” basis is required except for ships performing > 300 voyages / year

► on an annual basis.

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Data for the monitoring on a “per voyage” basis

► The following data are to be collected, determined or calculated:

Port of departure, port of arrival, date and hour of departure and arrival, time spent

Distance travelled

Amount of cargo carried:

• number of passengers,

• amount of cargo (metric tons or cubic meters)

Transport work (= distance travelled x amount of cargo carried)

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Data for the monitoring on an annual basis

►Values are determined by aggregation of the relevant per voyage data. The following parameters are to be monitored:

amount and emission factor for each type of fuel consumed in total

total aggregated CO2 emitted

aggregated CO2 emissions from all voyages:

• between ports under a Member State's jurisdiction

• which departed from ports under a Member State's jurisdiction

• to ports under a Member State's jurisdiction

CO2 emissions which occurred within ports under a Member State's jurisdiction at berth

total distance travelled

total time spent at sea

total transport work

average energy efficiency

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Data for the monitoring on an annual basis (cont.)

► The average energy efficiency is to be monitored by using at least four indicators:

fuel consumption per distance = total annual fuel consumption/total distance travelled

fuel consumption per transport work = total annual fuel consumption/total transport work

CO2 emissions per distance = total annual CO2 emissions/total distance travelled

CO2 emissions per transport work = total annual CO2 emissions/total transport work.

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Monitoring plan

►By 31 August 2017, companies will have to submit to the verifiers a monitoring plan for each of their ships indicating the method chosen to monitor and report CO2 emissions and other relevant information including in particular:

the procedures used for monitoring the fuel consumption of the ship

the emission factors used for each fuel

the procedures used for determining activity data per voyage, in particular the procedures, data sources and formulae used for determining and recording:

• the distance,

• the cargo carried and the number of passengers, as applicable,

• the time spent at sea between the port of departure and the port of arrival.

the method to be used for closing data gaps in case of missing data.

►Companies will have to use standardised monitoring plans based on templates to be developed by the European Commission.

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Emissions report

► From 2019, by 30 April of each year, companies will have to submit to the Commission and to the flag States authorities, a verified emissions report concerning the CO2 emissions and other relevant information.

► The emissions report should contain the following information:

company and ship data,

identity of the verifier that assessed the emissions report,

information on the monitoring method used and the related level of uncertainty,

results from annual monitoring of the parameters.

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SHIP OWNER

Submit monitoring plan and emission 

report

VERIFIERIssue a 

document  of compliance

Flag State 

Submit verified emission report

Inform of the issuance of a document of compliance

Commission (EU central body)

MEMBER STATE

Enforcement measures (penalties)

Provide a list of ships that may be in breach with the 

regulations

Compliance cycle for MRV regulations

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Implementation schedule

► 2015

21 April: adoption of EU Reg. 2015/757

1st July: Entry into force

► 2016

Preparation of technical rules, in particular on data exchange formats, electronic templates, standardized monitoring plans and emission reports.

31 December : Formal adoption of technical rules.

► 2017

Accreditation of verifiers

1st July: System of penalties for failure to comply with monitoring and reporting obligations to be set up by Member States

31 August : Monitoring plans to be submitted to the verifier

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Implementation schedule (cont.)

► 2018

1st January : start of “per voyage” and annual monitoring

► 2019 and subsequent years

By 30 April each year: verified emission report to be submitted to the Commission and flag authorities

By 30 June each year: A document of compliance issued by a verifier to be kept on board ships, covering the relevant reporting period.

By 30 June each year, the Commission will make publicly available the information on CO2 emissions, fuel consumption, technical efficiency of the ship (EEDI or estimated index value EIV, where applicable), time spent at sea, method applied for monitoring, identity of the verifier, etc.

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2015 2016 2017 2018 2019

21/04 : adoption of EU Reg. 2015/757

01/07 : Entry into force of the EU Reg.

Preparation of technical rules

31/12 : adoption of technical rules

01/07 : set up of penalty system

30/06 : document of compliance on board

01/04 : submit verified emission report

01/01 : start of monitoring

31/08 : submit monitoring plans

Accreditation of verifiers 

Preparation of monitoring plans

Implementation schedule (cont.)

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Move Forward with ConfidenceMove Forward with Confidence

Thank you !