Climate Action

Proposal for amending Regulation (EU) 2015/757 on the monitoring, reporting and verification of CO2

emissions from maritime transport

ENVI Committee, Brussels, 6/11/2019

European CommissionDG Climate Action

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Climate Action

Outline

• Overall context: at global & EU level

• Regulation (EU) 2015/757

• Why this proposal?

• Impact Assessment: policy options

• Key insights of this proposal

• EU MRV – 1st monitoring cycle

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Climate Action

Context: GHG emissions from shipping at global level

• transport 80% of all global trade

• 2-3% of total global GHG emissions

• Expected to increase by 2050 (+50% to +250%)

• EU ship owners control 1/3 of the world’s merchant fleet

3Source: MarineTraffic.com

Climate Action

Context: GHG emissions from shipping at EU level

• Maritime, a key sector at EU level

Represents 13% of the EU GHG transport emissions in 2015 and is expected to increase by 2050

Climate Action

Context: A need for urgent concrete actions

• Paris Agreement

• Efforts at international level should be encouraged and regularly reviewed by the Commission

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IMO or the Union to start from 2023, including preparatory work and stakeholder consultations

Climate Action

Context: Developments at the international level

• 2011 – IMO energy efficiencylegislations (EEDI*, SEEMP**)

• 2016 – IMO Data Collection System for fuel oil consumption

• April 2018 – IMO initial GHG Strategy, key objectives:

• Reduce GHG emissions by at least 50% by 2050 compared to 2008, pursuing efforts to phase out asap this century.

• Reduce carbon intensity of ships by a least 40% by 2030 compared to 2008 levels.

6* Energy Efficiency Design Index** Ship Energy Efficiency Management Plan

Climate Action

Context: Developments at the EU level

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System for monitoring,

reporting and verification

(MRV) of emissions

Definition of reduction

targets for the maritime

transport sector

Application of actual

reduction measures

1 2 3

• 2013 – EC communication on integrating shipping emissions

• 2015 – Regulation (EU) 2015/757 & implementing acts

… preferably at global level, but action urgently needed

Climate Action

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Regulation (EU) 2015/757: Key Objectives

Collect robust and verified CO2 emissions data

Bring transparency to stimulate the up-take of energy efficiency technologies and behaviour.

Inform future policy-making decision

Climate Action

Why this proposal?

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Reg (EU) 2015/757

Implementingacts

PreparationEU MRV system

IMO system

2015 2016 2017 2018 2019 2020

MARPOL amendments

IMO guidelines

Preparation

• Co-existence of two systems:

• Art 22.3 of Regulation (EU) 2015/757

« In the event that an international agreement on a global monitoring, reporting and verification system for greenhouse gas emissions or on global measures to reduce greenhouse gas emissions from maritime transport is reached, the Commission shall review this Regulation and shall, if appropriate, propose amendments to this Regulation in order to ensure alignment with that international agreement.”

Climate Action

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Why this proposal?

Key objectives:

• Facilitate harmonious implementation

• Reduce administrative burden for ships

• Preserve the objectives of the EU MRV Regulation:

Collect robust and verified CO2 emissions data

Bring transparency to stimulate the up-take of energy efficiency technologies and behaviours.

Inform future policy-making decision

Climate Action

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Impact Assessment: Policy options

Three options:

Option 1: Baseline scenario

•Keep EU Regulation as it is

Option 2: Streamlining

•Different alignment options, including:scope, definitions, monitoring parameters, plans and templates, verification and transparency

Option 3: high convergence

•Harmonisation of all technical aspects

(scope, verification, transparency, monitoring parameters, definitions, etc.)

Discarded candidates: Governance, CO2 reporting

Climate Action

Key insights of this proposal

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• Definitions of “company” and “reporting period”

• Obligations in case of “change of companies”

• Voluntary reporting of “cargo carried”

• Use of the same parameter to calculate distance travelled and time at sea

• Streamlining of the monitoring plans

What we propose to change:

What we propose no to change:

• Scope, Governance, Transparency, Verification, CO2

monitoring

Climate Action

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• A first bottom-up picture of all EEA-related shipping emissions• Over 11.600 Emission Reports, mostly from non EEA flagged

ships

• Representing around ~ 139 million tonnes of CO2 emissions

State-of-Play: 1st compliance cycle under the EU MRV (2018 CO2 emissions)

At berth

Intra EEA

Extra EEA Outgoing

Extra EEAIncoming

DM(8

Slide 14

DM(8 pleae check figuresDITTEL Maja-Alexandra (CLIMA); 24/10/2019

Climate Action

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State-of-Play: 1st compliance cycle under the EU MRV (2018 CO2 emissions)

• The EU MRV system is delivering

• Transparency is ensured

• High political attention to address emissions from the sector

Climate Action

Thank you for your attention!

Please visit our websites:

http://ec.europa.eu/clima/policies/transport/shipping/index_en.htm

https://ec.europa.eu/clima/consultations/articles/0032_en

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Climate Action

Timeline for implementation of MRV

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2015

COP Paris

2016 2017 2018 2019

Submission of emission reports

Preparation of technical rules

MEPC 68 MEPC 69

MEPC 70

MEPC 71

MEPC 72

MEPC 73

MEPC 74

Climate Action

Regulation (EU) 2015/757: workflow

Assesses MP

Drafts MP

Monitors CO2

emissionsProduces

ER

Submits Verified ER

VerifiesER

DraftsVR

IssuesDoC

ConsultsVerified ER

& DoC

Consult public information

(Art. 21)

COMPANY

VERIFIERCOMMISSION

MS / FLAGPUBLIC

20192017 2018

1st Report. Period

30/04

30/06

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Climate Action

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Key insights of the proposed revision

Scope EU MRV IMO DCS Proposal

Size of ships No changes

Voyages Ships engaged in International & Domestic voyages

Ships engaged in International voyages only

No changes

Type of ships Transport of passengers or cargo only

All types No changes

Climate Action

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Monitoring EU MRV IMO DCS Proposal

Parameters Fuel & CO2 reporting:• Outgoing voyages• Ingoing voyages• Intro EU voyages• Port Emissions

Fuel reporting only

No changes

Cargo carried and transport work

Deadweight tonnage

Cargo carried becomesvoluntary

Time spent at sea

Hours underway Alignment

Distance travelled

Distance (IMO def)

Alignment

Plans & templates

EU templatesand plans

IMO templates Streamlining

Key insights of the proposed revision

Climate Action

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Definition EU MRV IMO DCS Proposal

Company Not the same legal definition Alignment

Reporting period

Voyagesaccounted in the first calendar year

Voyages accounted under the concernedcalendar year

Alignment

Change of companies

New company responsible for the entire reporting period

New company only responsible as from the day of the change

Alignment

Key insights of the proposed revision

Climate Action

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Governance EU MRV IMO DCS Proposal

Reporting Flag neutral – all ships calling at EEA ports report to the EC and authorities of flag States concerned

Ships report only to their flag State, and flag State to IMO No changes

Verification EU MRV IMO DCS Proposal

Verifiers Accredited third party verifiers

Flag Administrationsor duly authorized organisations

No changesVerificationrules

ISO standards & EU rules

IMO guidelines & national rules

Compliance Document of Compliance

Statement of Compliance

Key insights of the proposed revision

Climate Action

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Transparency EU MRV IMO DCS Proposal

Publication Information of CO2 emissions and other relevant information (art 21) per ship

Anonymised per-ship data in an IMO database only accessible to Parties

No changes

Reporting Annual report to be prepared by the Commission

Annual report tothe Maritime Environment Protection Committee

No changes

Key insights of the proposed revision

Climate Action

Timeline: Co-Decision Process

• Council is advanced: COREPER mandate since 25/10/2019

• Provisional EP timetable: vote in June 2020

Can the file be advanced faster?