Understanding MRV. A practical approach to implementing Monitoring, Reporting and Verification April 6 th, Working together for a safer world
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1 Understanding MRV A practical approach to implementing Monitoring, Reporting and Verification April 6 th, 2016 Working together for a safer world
2 Scope of MRV Regulation All voyages to, from and between ports under Member State jurisdiction Time at sea and at berth/anchor All ships >5,000GT Regardless of Flag Except Warships Naval Auxiliaries Wooden Ships of Primitive Build Ships not Propelled by Mechanical Means Government Ships on Non-Commercial Service Source: Marine Traffic
3 Implementation schedule EIF: Entry into force 1. EIF 3. Monitoring plans to be submitted to verifier 6. First report submitted to verifier 2. Preparation time 5. First monitoring period JUL AUG APR JUN 4. Assessment of monitoring plans by verifier 7. Document of Compliance
4 What will it mean for Shipowners? Regulation could be called MVR instead of MRV Monitoring Plan To be prepared and reviewed by 2017 for each vessel Will cover the method to monitor CO 2 The plan will be assessed for conformity by an accredited verifier Verification Owner/operators need to engage with a 3 rd Party Verifier to review and approve their reports Reporting On an annual basis, reports are submitted to the EU
5 What are we monitoring for each voyage? CO 2 emitted As function of fuel consumption Transport work Distance travelled (actual or shortest) Date, time and ports Departure and arrival ports Amount and emission factor for each fuel type Cargo carried (MT, m 3, TEU, cargo units, lane numbers or passengers) Date and hour of departure / arrival (GMT) Includes M/E, A/E, G/Ts, IGGs, Boilers Transport work = Distance x Cargo Time spent at sea (excluding anchoring) Exceptions: Ships only calling EU ports all year only need to monitor annually Ships performing >300 voyages per calendar year only need to monitor annually
6 Methods to measure fuel consumption May vary in complexity and cost. They can be used in combination Bunker delivery note and periodic stocktake of fuel tanks* Bunker fuel tank measurements on board Fuel flow meters for applicable combustion processes Direct emissions monitoring *Cannot be used where cargo is burnt as fuel (e.g. LNG carriers)
7 What do I need to monitor and report annually? Most of this will also be made publically available by the EC Annual average efficiency expressed as: Aggregated annual data Amount and emission factor per fuel type in total CO 2 emissions (from EC ports, to EC ports, between EC ports, at berth and total) Fuel consumption Distance travelled Time at sea Transport work Average energy efficiency Exceptions: Non-commercial voyages Fuel consumption CO 2 emissions
8 Verification Workflow Reference Source: ESSF MRV Subgroup Verification & Accreditation: Working paper on Verification & Accreditation V March 2016
9 Key Differences between this and what we currently do Monitoring Cargo and distance Uncertainty Range within the values lie Materiality Errors, omissions, misstatements impact the disclosed numbers Reasonable Assurance degree of confidence required by the verifier. Higher than limited assurance
10 What we don t know? Detailed guidance documents from the EC expected in 2016 Materiality Accreditation bodies and methods Monitoring plan format Use of electronic templates Data exchange formats Uncertainty calculation guidance Penalties for noncompliance Future harmonisation with IMO Other?
11 Mapping the way to cleaner emissions Practical approach to compliance whilst achieving the desired goals Building upon standard practice for the Shipping Industry Utilisation/ alignment with existing systems like ISO 50001, SEEMP, ISM etc. Challenge ahead called Global Ship GHG data collection scheme of IMO Link to EU MRV GHG reduction targets? Measures to achieve these reduction targets? Distinct from existing technical and operational measures addressing climate change.
12 Thank you for your attention. Anastasia Kouvertari Senior Environmental Business Development Specialist Marine & Offshore T E anastasia.kouvertari@lr.org Working together for a safer world Lloyd s Register and variants of it are trading names of Lloyd s Register Group Limited, its subsidiaries and affiliates. Copyright Lloyd s Register EMEA A member of the Lloyd s Register group.
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