Subject Introduction to the EU regulation on monitoring, reporting and verification of carbon dioxide (CO 2 ) emissions (EU MRV) To whom it may concern Technical Information No. TEC-1031 Date 2 June 2015 The EU regulation on monitoring, reporting and verification of carbon dioxide (CO 2 ) emissions (hereinafter called "EU MRV") has been adapted on 28 April 2015. This regulation lays down rules for developing the monitoring plan and submitting the emissions report for ships above 5,000 gross tonnage, which arrive at, within or departing from ports under the jurisdiction of an EU member state, regardless of ship s flag. For ships that cannot comply with the monitoring and reporting requirements, the regulation includes penalty provisions such as an expulsion order. Future schedule and summary of the regulation are provided as below for your information. 1. Future Schedule 1 July 2015 Enter into force of EU MRV - end of 2016 Development of detailed technical rules by the European Commission 31 August 2017 Due date for submitting monitoring plans for fuel consumption to a verifier 1 January 2018-31 December Monitoring of the fuel consumption for reporting period of 2018 30 April 2019 Due date for submitting emissions report on reporting period of 2018 to a verifier 30 June 2019 Due date of keeping valid document of compliance on board *Afterward, the annual emission report is to be submitted by the similar procedure. 2. Summary of EU MRV (1) Name of the regulation Regulation (EU) 2015/757 of the European Parliament and of the Council on the monitoring, reporting and verification of carbon dioxide emissions from maritime transport, and amending Directive 2009/16/EC (To be continued) NOTES: ClassNK Technical Information is provided only for the purpose of supplying current information to its readers. ClassNK, its officers, employees and agents or sub-contractors do not warrant the accuracy of the information contained herein and are not liable for any loss, damage or expense sustained whatsoever by any person caused by use of or reliance on this information. Back numbers are available on ClassNK Internet Homepage (URL: www.classnk.or.jp).
ClassNK Technical Information No. TEC-1030 (2) Scope (Article 2) This regulation applies to ships above 5,000 gross tonnage in respect of CO 2 emissions released during their voyages from their last port of call to a port of call under the jurisdiction of EU Member State and from a port of call under the jurisdiction of EU Member State to their next port of call. This regulation does not apply to warships, naval auxiliaries, fish-catching or fish-processing ships, wooden ships of a primitive build. (3) Liability for shipowners or any other organisation or person, such as the manager or the bareboat charterer companies (hereinafter called as "company ") (Article 4,6,11,18) (i) By 31 August 2017, companies shall submit to the verifiers a monitoring plan for each of their ships indicating the method chosen to monitor and report CO 2 emissions and other relevant information. (ii) Notwithstanding paragraph (i), for ships falling under the scope of this regulation for the first time after 31 August 2017, the company shall submit a monitoring plan to the verifier no later than two months after each ship's first call in a port under the jurisdiction of EU Member State. (iii) From 2019, by 30 April of each year, companies shall submit to the Commission and to the authorities of the flag States concerned, an emissions report concerning the CO 2 emissions for the previous entire reporting period for each ship, which has been verified as satisfactory by a verifier. The reporting period means one calendar year during which CO 2 emissions have to be monitored and reported. For voyage starting and ending in two different calendar years, the monitoring and reporting data shall be accounted under the first calendar year concerned. (iv) By 30 June of the year following the end of a reporting period, ships shall carry on board a valid document of compliance. (4) Monitoring plan (Article 6,7) The monitoring plan shall contain at least the following elements. (i) The identification and type of ship, including its name, its IMO identification number, its port of registry. (ii) The name of the company and the address, telephone and e-mail details for a contact person. (iii) A description of CO 2 emission sources on board the ship, such as main engine, auxiliary engines, gas turbines, boiler and inert gas generators, and fuel types used. (iv) A description of the procedures, systems and responsibilities used to update the list of CO 2 emissions sources over the reporting period. (v) A description of the procedures for monitoring the fuel consumption of the ship. (vi) Single emission factors used for each fuel type. (To be continued) 2
ClassNK Technical Information No. TEC-1030 (5) Monitoring data (Article 9,10) Companies shall monitor the following parameters for each ship and for each calendar year on annual basis. (i) Amount and emission factor for each type of fuel consumed in total. (ii) Total aggregated CO 2 emitted within the scope of the regulation. (iii) Total distance travelled. (iv) Total time spent at sea. (v) Total transport work (by multiplying the distance travelled with the amount of cargo carried). (vi) Average energy efficiency. Companies shall also be required to monitor the following parameters on a per-voyage basis. (i) Port of departure and port of arrival including the data and hour of departure and arrival. (ii) Amount and emission factor for each type of fuel consumed in total. (iii) CO 2 emitted. (iv) Distance travelled. (v) Time spent at sea. (vi) Cargo carried. (vii) Transport work (by multiplying the distance travelled with the amount of cargo carried). (6) Companies shall include in the emissions report the following information (i) Data identifying the ship and the company (ii) The identity of verifier that assessed the emissions report (iii) Parameters for monitoring in accordance with paragraph (5). (7) Liability for verifier (Article 13,15,17) (i) The verifier shall assess the conformity of the monitoring plan with requirements laid down in this regulation. Where the verifier's assessment identifies non-conformities with those requirements, the company concerned shall revise its monitoring plan accordingly and submit the revised plan for final assessment by the verifier before the reporting period starts. (ii) The verifier shall assess the conformity of the emissions report with requirements laid down in this regulation and whether the CO 2 emissions and other relevant information included in the emissions report have been determined in accordance with this regulation and the monitoring plan. Further, the verifier shall identify potential risks related to the monitoring and reporting process by comparing reported CO 2 emissions with estimated data based on ship tracking data and characteristics such as the installed engine power. Where significant deviations are found, the verifier shall carry out further analyses. (iii) Where the emissions report fulfils the requirements set out in the regulation, the verifier shall issue, on the basis of the verification report, a document of compliance for the ship concerned. (To be continued) 3
ClassNK Technical Information No. TEC-1030 (8) Qualification for verifier (Article 14,16) (i) The verifier shall be independent from the company or from the operator of a ship and shall carry out the activities required under this regulation in the public interest. (ii) Verifiers shall be accredited for activities under the scope of this regulation by the European Commission. (9) Penalties (Article 20) (i) EU Member States shall set up a system of penalties for failure to comply with the monitoring and reporting obligations set out in Articles 8 to 12 and shall take all the measures necessary to ensure that those penalties are imposed. EU Member States shall notify those provisions to the Commission by 1 July 2017. (ii) In the case of ships that have failed to comply with the monitoring and reporting requirements for two or more consecutive reporting periods, the competent authority of the EU Member State of the port of entry may issue an expulsion order which shall be notified to the Commission, EMSA, the other EU Member States and the flag State concerned. As a result of the issuing of such an expulsion order, every EU Member State shall refuse entry of the ship concerned into any of its ports. (10) Publication of information and commission report (Article 21) (i) By 30 June each year, the Commission shall make publicly available the information on CO 2 emissions reported in accordance with the regulation. (ii) Where disclosure of a category of aggregated data, would exceptionally undermine the protection of commercial interests, a different level of aggregation of that specific data shall be applied, at the request of the company, so as to protect such interests. Where application of a different level of aggregation is not possible, the Commission shall not make those data publicly available. (iii) The Commission shall publish an annual report on CO 2 emissions and other relevant information from maritime transport, including aggregated and explained results. And the Commission shall assess every two years the maritime transport sector's overall impact on the global climate though non- CO 2 -related emissions or effects. (11) International Cooperation(Article 22) In the event that an international agreement on a global monitoring, reporting and verification system for greenhouse gas emissions 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. (12) Entry into force(article 26) This regulation shall enter into force on 1 July 2015. (To be continued) 4
ClassNK Technical Information No. TEC-1030 3. Any other business (1) In article 22 of EU MRV, it is stipulated that, in the event that an international agreement on a global monitoring, reporting and verification system for greenhouse gas emissions 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. For such occasions, the deliberation of IMO's MRV scheme called as Data Collection System is expected to be accelerated in order to finalize the discussion towards January 2018 when EU MRV becomes the effectiveness, as decided to hold the intersessional working group in this September at MEPC68. (2) The approval for the verifiers by the European Commission will be launched in the early part of 2017. ClassNK intends to go forward in order to make sure that we could be accredited as the verifier under EU MRV, and continue to offer the updated information on EU MRV. For any questions about the above, please contact: NIPPON KAIJI KYOKAI (ClassNK) External Affairs Division, Administration Center Annex, Head Office Address: 3-3 Kioi-cho, Chiyoda-ku, Tokyo 102-8567, Japan Tel.: +81-3-5226-2038 Fax: +81-3-5226-2734 E-mail: xad@classnk.or.jp Attachment: 1. Regulation (EU) 2015/757 of the European Parliament and of the Council on the monitoring, reporting and verification of carbon dioxide emissions from maritime transport, and amending Directive 2009/16/EC 5
Attachment 1. to ClassNK Technical Information No. TEC-1031