EU Proposal for Regulation of Ship Emissions

According to The Shipping Herald, on 28 June 2013, the European Commission published its finalized proposal fora European Union (EU) regulation on Monitoring, Reporting and Verification (MRV) of CO2 emissions from ships. The regulation, No. 525/2013, is introduced further to the EU’s Climate and Energy Package  adopted on 23 April 2009)  which seeks international agreement including emission reduction targets through the IMO or the UNFCCC.

The regulation will apply to certain vessels conducting voyages into, out of and between EU ports and will require annual reporting of their CO2 emissions in line with a verified monitoring plan. The purpose of the regulation is to provide reliable information on greenhouse gas (GHG) emissions within maritime transport. As a first step the regulation is intended to focus on and establish CO2 emissions which will then allow the EU to define reduction targets associated with this and finally the means to achieve those reduction targets, as appropriate.

A monitoring, reporting and verification (MRV) plan for GHG emissions provides a standard framework to produce a GHG emissions inventory, which may form part of a regulated GHG emissions reduction plan and therefore is the basis for setting a GHG reduction trajectory or may be applied voluntarily across an industry specific sector to develop an emissions inventory. The EU proposal for an MRV regulation focuses on CO2 only at this stage, recognizing that, despite estimates, the amount of CO2 from vessels is unknown. The Commission’s view is  that a system for monitoring and reporting these emissions is a pre-requisite before the introduction of any further energy efficiency measures or GHG reduction measures.

The regulation will apply to all ships greater than 5,000 GRT undertaking one or more voyages into, out of and between EU ports and will require per-voyage and yearly monitoring of CO2 emissions, as well as other parameters including energy efficiency metrics. Annually, ‘companies’ (DOC holder) must provide an emissions report for the previous calendar year’s activity. In addition, this will include the technical efficiency of the ship (the Energy Efficiency Design Index (EEDI) or the Estimated Index Value (EIV) in accordance with IMO Resolution MEPC.215 (63), where applicable).

If the regulation is approved by both the European Council and European Parliament, then it will enter into force on 1 July 2015.

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