Climate Action

The EU MRV shipping Regulation:

entry into force and next steps

Green Shipping Summit

Genoa, 17/09/2015 Yolanda Villar Ruberte Legal officer Unit 'International Carbon Market, Aviation and Maritime' DG Climate Action, European Commission

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Climate Action

Content

• Context and overview

• Timetable and main obligations

• Preparing for its implementation: next steps

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Climate Action

Maritime GHG Emissions in EU

• Area with an EU long standing commitment (Energy & Climate change package 2009)

• EU emissions ≈180 Mt CO2 in 2010 (precise amount unknown)

• Higher emissions than EU chemical industry, refineries or cement production

• Increased by 25% since 1990

• Significant further growth expected if no action

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Climate Action

Shipping MRV Regulation (EU) 2015/757

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• 1st step EU gradual approach advanced in a policy paper from June 2013:

• EU-wide monitoring & reporting obligations for voyages from/to EU ports carried out from 1st January 2018 onwards

• Transparency of externally verified information on CO2 emissions and calculations energy efficiency

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What the MRV Regulation aims for

• • Generation of robust results

• •Lean approach using "already monitored data"

• •Balance between confidentiality & transparency

• •Replicability in view of global MRV

• •Reflection of international discussions (global MRV, efficiency standards)

• •Maximising added value of MRV by addressing market barriers

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Climate Action

MRV: Scope

• Ship voyages "related to the EU"

• Flag-neutrality

• Exclusion of small emitters below 5000 GT

• Exclusion of special ships (e.g. military, fishing)

• Focus on :

• CO2 as predominant greenhouse gas emission from ships

• Ship efficiency (expressed by different indicators)

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Climate Action

Entities involved • Ship:CO2 emissions and other data are to be monitored and

reported "per ship" obligation to carry document of compliance on board

• Company: shipowner or other legal or physical person delegation to ship manager, charterer, etc. in charge of monitoring and reporting, possible;

• Verifier: in charge of verification of monitoring plans and emission reports, issues document of compliance

• Commission (supported by EMSA): central authority in charge of receiving and publishing emission reports

• MS' authorities: in charge of inspections and enforcement, acting as FS or PS

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MRV PREPARATIONS

SUBMISSION OF EMISSIONS REPORTS SATISFACTORILY VERIFIED

ENFORCEMENT STARTS

Timeline MRV activities

MONITORING STARTS ACCORDING TO

MONITORING PLAN

Climate Action

Essential obligations under the MRV Regulation

Before the reporting period starts

prepare and submit for assessment to an MRV accredited verifier a Monitoring Plan

During the reporting period (from 1/1 to 31/12)

monitor "per ship" the relevant parameters for all their voyages falling under the MRV carried out during a "reporting period" (2018:1st reporting period)

After the reporting period (by 30th April X+1)

incorporate "satisfactorily assessed" results into an Emissions report. Data shall be consistent, complete and comparable over the time.

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Climate Action

"Methods for monitoring CO2 emissions" under the MRV Regulation Calculation of CO2 emissions (Annex I - Part A)

• Formula for calculations

• Emission factors of fuel: BDN or Default values for emission factors

Methods for monitoring CO2 emissions (Annex I - Part B)

• Companies must define in the Monitoring plan the monitoring method chosen: (BDN and regular stocktaking of fuel tanks/Bunker fuel tank monitoring on-board/Fuel flow meters/Direct CO2 emissions measurement

• Room for combination of monitoring methods to enhance accuracy (to be assessed by the verifier)

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Climate Action

"Monitoring of other relevant information" under MRV Regulation

Annex II prescribes essential elements to be monitored:

a) Time at sea

b) Distance travelled

c) Transport work

d) to g) Cargo carried per ship type: passengers, ro-ro, containers and "other ships types" (some further technical rules to define "cargo carried" are required)

• in order to calculate average energy efficiency

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Climate Action

Emissions report

• A) Data identifying the ship

• B) Information monitoring method applied to monitoring

• C) Satisfactorily verified annual results

• aggregated CO2 emissions

• Total distance travelled

• Total time at sea

• Total transport work

• Average energy efficiency

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Climate Action

Verification according to the MRV Regulation

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• Independent impartial verifiers

• Essential aspects of the verification set in the MRV Regulation (Chapter III)

• Verifiers to:

• assess the conformity of the monitoring plans (MP);

• assess the conformity of the emissions report (ER);

• issue a verification report with an opinion statement on the ER and specifying all issues spotted during the verification process;

• issue and communicate a "MRV document of compliance" (DoC) to be held on board

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General obligations and principles for the verifiers

• Independent impartial verifiers

• Reliability, accuracy & credibility of information: attributed fuel consumption/voyage,…

• List of minimum requirements for emissions reports to be considered by verifiers enabling determination of CO2 emissions with reasonable assurance:

Submitted in accordance with templates and rules (Article 12)

Coherent with estimated data (ship tracking data)

Free of inconsistencies

Data collection carried in line with applicable rules

Complete and consistent records

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Climate Action

Accreditation of MRV verifiers

• Independent and competent "legal entities" accredited by an EU National Accreditation Body (NAB), pursuant to Regulation 765/2008

• Aspects of accreditation set under Regulation 765/2008 (Accreditation Regulation) apply to accreditation under MRV Regulation unless specific rules are developed

• Accreditation process to be put in place by end of 2016

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Climate Action

Next steps preparing for implementation

o Legal mandates for the Commission

o Additional implementing technical rules "cargo carried"

o Templates

o Updates monitoring methods rules Annexes I and II

o Verification & Accreditation

Expert's consultation process

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Climate Action

MRV experts' subgroup onMonitoring and templates

MRV Regulation mandates the Commission

• to adopt further technical rules for "monitoring of cargo carried" for ships other than passengers, containers and ro-ro (Annex II) (implementing acts)

• to adopt templates on monitoring plans, emission reports and document of compliance as technical rules ensuring uniform implementation (implementing acts)

• to amend/update (through delegated acts) monitoring rules and methods under Annexes I and II so as to take into account:

• relevant international rules, and international and European standards

• technological and scientific developments

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Climate Action

MRV expert subgroup Verification & Accreditation issues • Further specify rules for MRV verification activities

(delegated acts)

• Further specify rules for the accreditation of MRV verification activities (delegated acts)

• List of items to be considered developed under Parts A and B of Annex III of the MRV Regulation

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Climate Action

Experts' consultation - Steps ahead

• Preparation of supporting technical legislation through two MRV "experts groups" set under the ESSF umbrella (mid- 2015/spring 2016)

• Adoption of delegated/implementing acts by the Commission end of 2016

• Accreditation of verifiers: early 2017

• Templates Monitoring plan: before 2nd half 2017

• Monitoring Plans to be submitted before 31st August 2017

• Monitoring stars from 1st January 2018 onwards…

Climate Action

Thank you for your attention!

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