EU MRV Regulation. Overview, Update & Way Forward. Verify. Comply. Navigate. 1.

Transcription

1 EU MRV Regulation Overview, Update & Way Forward Verify. Comply. Navigate. 1 February

2 WELCOME NOTE & AGENDA A Welcome note & Agenda B EU MRV: Background & Regulatory Framework C EU MRV Monitoring: Basic rules & Principles D EU MRV Monitoring Plan: Quick overview E EU MRV Reporting F EU MRV Roadmap for shipping companies G Comparison between EU MRV and IMO DCS H About Verifavia Shipping

3 A Welcome note & Agenda B EU MRV: Background & Regulatory Framework C EU MRV Monitoring: Basic rules & Principles D EU MRV Monitoring Plan: Quick overview E EU MRV Reporting F EU MRV Roadmap for shipping companies G Comparison between EU MRV and IMO DCS H About Verifavia Shipping

4 Commission s 3-step strategy to cut GHG emissions from maritime transport announced in June 2013 Step 1 Monitoring, reporting and verification of carbon emissions from ships + publication of data Step 2 Emissions reduction targets for the maritime transport sector Step 3 Further measures, including Market-Based Measures (MBM) 4

5 The Regulation 2015/757 came into force on 1 July 2015 M Monitoring R Reporting of fuel consumption, CO 2 emissions, and transport work of ships V Verification 5

6 Commission s objectives of the EU MRV Raise awareness by making publicly available emissions and energy efficiency parameters for individual ships Reduce emissions from the voyages covered compared with a business as usual situation Provide insights into the environmental performance of individual ships Contribute to building an international data collection system 6

7 The EU MRV regulatory framework includes the Regulation 2015/757 7

8 and the Delegated & Implementing Acts, which were published in November 2016 Delegated Regulation (EU) 2016/2071 Shipping Emissions Monitoring Methods Implementing Regulation (EU) 2016/1928 Shipping Emissions Cargo Carried Implementing Regulation (EU) 2016/1927 Shipping Emissions Templates Delegated Regulation (EU) 2016/2072 Shipping Emissions Verification & Accreditation 8

9 To be followed in 2017 by Guidance documents Commission s FAQ 9

10 A Welcome note & Agenda B EU MRV: Background & Regulatory Framework C EU MRV Monitoring: Basic rules & Principles D EU MRV Monitoring Plan: Quick overview E EU MRV Reporting F EU MRV Roadmap for shipping companies G Comparison between EU MRV and IMO DCS H About Verifavia Shipping

11 Which ships are included in the EU MRV Regulation? Ships exceeding GT Regardless of Flag or country of ownership Calling at an EU port from 1 January 2018 And carrying cargo or passengers for commercial purposes 11

12 Which ships are exempted from MRV? Exempted ships: warships naval auxiliaries fish-catching or fish-processing ships wooden ships of a primitive build ships not propelled by mechanical means government ships used for non-commercial purpose Ships used for dredging ice-breaking pipe laying offshore installation activities. are also exempted if not serving the purpose of transporting cargo or passengers for commercial purposes 12

13 Who is the accountable entity? Every Ship must: The accountable entity is the Ship Develop its own Monitoring Plan and have it assessed Monitor and report its emissions and activity data Have its Emissions Report independently verified Carry on-board a Document of Compliance (DoC) 13

14 Who is responsible for compliance? The Company means the shipowner or any other organisation or person, such as the manager or the bareboat charterer, which has assumed the responsibility for the operation of the ship from the shipowner >>> similar to the DoC holder in the ISM Code The responsible entity is the Company 14

15 What are the key deadlines? Accreditation of verifiers Q Completion of Monitoring Plan assessment / Start of Reporting Period 1 31 st Dec / 1 st Jan Deadline to submit verified Emissions Report to EC and Flag State 30 th April st Aug Submission of Monitoring Plan to verifier 31 st Dec End of Reporting Period 1 30 th June 2019 On-board EU MRV Document of Compliance (DoC)

16 What is the EU MRV compliance process? Before the start of the monitoring period (Aug-Dec 2017) Monitoring period (2018 onwards) After the monitoring period (Jan-Apr 2019 onwards) Deadline 30 Apr 2019 Deadline 30 Jun 2019 Drafting Monitoring Plan Assessment of the Monitoring plan Monitoring of fuel consumption, CO 2 emissions & transport work Reporting of fuel consumption, CO 2 emissions & transport work Issuance of Verification Opinion Statement Submission of verified information to Commission & flag state Document of Compliance issued Document of Compliance kept on-board the ship NO Is the Monitoring Plan in line with the Regulation? YES NO Is the Emissions Report in line with the Regulation and the Monitoring Plan? YES KEY DATES End of 2016: Implementing / Delegated Acts Start of 2017: Accreditation of verifiers :Monitoring Plan submitted to verifier :Start of the 1 st Reporting Period RESPONSIBILITIES Shipping Company Verifavia Shipping Revision of the Emissions Report :End of 1 st Reporting Period : Final date to submit a verified Emissions Report to Commission & Flag State :On-board Document of Compliance 16

17 What is the geographical scope of EU MRV? All voyages calling at an EEA port of call are subject to EU MRV EU Member States: Belgium, Bulgaria, Croatia, Republic of Cyprus, Denmark, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Malta, Netherlands, Poland, Portugal, Romania, Slovenia, Spain, Sweden and the UK. EEA Member States: EU Member States + Iceland + Norway! Gibraltar is considered to be an EU port EEA outermost regions: see next slide 17

18 What are the EEA outermost regions? All voyages calling at a port of call located in an EEA outermost region are also subject to EU MRV EEA outermost regions: Açores, Canary Islands, French Guiana, Guadeloupe, Madeira, Martinique, Mayotte, Reunion and Saint Martin 18

19 What is an EU MRV voyage? A port of call is a port where a ship stops to load or unload cargo or to embark or disembark passengers Consequently, stops for the sole purposes of refuelling, obtaining supplies, relieving the crew, going into dry-dock or making repairs to the ship and/or its equipment, stops in port because the ship is in need of assistance or in distress, ship-to-ship transfers carried out outside ports, and stops for the sole purpose of taking shelter from adverse weather or rendered necessary by search and rescue activities are not ports of call A voyage is a journey between two consecutive ports of call An EU MRV voyage is when at least one of the two ports of call is in the EEA Ballast voyages shall be considered same as laden voyages 19

20 Illustration Which voyages must be reported? - A Port of Call is a port where a ship stops to load or unload cargo or to embark or disembark passengers - A voyage is a journey between two Ports of Call - A reportable voyage is a voyage where at least one Port of Call is in the EU 20

21 Which parameters must be monitored per voyage? Fuel Consumption at Sea Fuel Consumption at berth Time at Sea Distance Sailed Cargo On-board Transport work Energy Efficiency parameters!! Fuel consumption, time at sea and distance sailed shall be monitored from berth to berth Fuel consumption within ports at berth shall be monitored separately! Ships performing more than 300 voyages per year all subject to the EU MRV are exempt from per-voyage monitoring Transport work = Cargo on-board * Distance sailed 21

22 Which emissions sources must be considered? - Main engines - Auxiliary engines - Boilers - Gas turbines - Inert gas generators! Incinerators do not have to be considered 22

23 Which are the monitoring methodologies available? Four available monitoring methodologies available Method A Bunker Fuel Delivery Note (BDN) and periodic stocktakes of fuel tanks Method B Bunker fuel tank monitoring on board Method C Flow meters for applicable combustion processes Method D Direct CO 2 emission measurements. CO 2 Emissions = Fuel consumption * Emission factor! It is possible to choose a different methodology for each emission source 23

24 Which emission factors shall be used? Type of Fuel IMO Values 2012/63 (t CO2 / t fuel) Heavy Fuel Oil Light Fuel Oil Diesel/Gas Oil Liquefied Petroleum Gas (Propane) Liquefied Petroleum Gas (Butane) Liquefied Natural Gas

25 How shall cargo be monitored? Ship Type Oil tankers, chemical tankers, gas carriers, bulk carriers, refrigerated cargo ships and combination carriers LNG carriers Pax ships Ro-ro ships Container ships Ro-pax Con-ro ships Vehicle carriers and general cargo ships Cargo to be monitored per ship type Actual mass of the cargo on-board Volume of cargo on discharge Number of passengers Occupied lane-meters * default weight OR, nb of cargo units * default weight OR, actual mass of the cargo on-board Actual mass of the cargo OR, nb of TEU * default weight Passengers: number of pax Freight: same Ro-ro ships Volume of cargo on-board Mass of cargo and / or deadweight carried 25

26 What happens in case of non-compliance? Non-compliance penalties: - Defined by each Member State - Must be effective, proportionate and dissuasive In case of non-compliance for two or more consecutive years:! The UK is the first EU country to disclose its draft national Regulation on penalties - Expulsion order issued by the Member State of the port of entry - Ban from entering any EU port 26

27 A Welcome note & Agenda B EU MRV: Background & Regulatory Framework C EU MRV Monitoring: Basic rules & Principles D EU MRV Monitoring Plan: Quick overview E EU MRV Reporting F EU MRV Roadmap for shipping companies G Comparison between EU MRV and IMO DCS H About Verifavia Shipping 27

28 The Monitoring Plan a fundamental document of MRV A mandatory requirement of the EU MRV Regulation Article 6 Must be submitted to an independent accredited verifier before 31st August 2017 for assessment Assessment must be successfully completed before 31 December st August and 31st December are only deadlines, process can be completed earlier Important to note the difference between assessment and verification 28

29 The Monitoring Plan can be designed based on existing infrastructure and statutory documents Outlines the procedures in place to monitor, collect, control, and report data for the EU MRV Demonstrates how the ship s MRV system is compliant with the EU MRV Regulation Compiles all information on how the ship s MRV system works, and must be complete, accurate, relevant and compliant Where relevant, references should be made to compatible monitoring elements from existing management systems (e.g. SMS, SEEMP, EMS, etc.) 29

30 The Monitoring Plan a requirement of the EU MRV Regulation and the Delegated Implementing Regulation on Shipping Emissions Templates Implementing Regulation (EU) 2016/1927 Shipping Emissions Templates 30

31 A Welcome note & Agenda B EU MRV: Background & Regulatory Framework C EU MRV Monitoring: Basic rules & Principles D EU MRV Monitoring Plan: Quick overview E EU MRV Reporting F EU MRV Roadmap for shipping companies G Comparison between EU MRV and IMO DCS H About Verifavia Shipping 31

32 Which data shall be reported in the emissions report? Only aggregated data shall be reported in the emissions report Annual reporting data: - Amount and emissions factor for each type of fuel consumed in total - Aggregated emissions from all reportable voyages (domestic / outbound / inbound / total) Energy efficiency parameters: - Fuel consumption per distance = total annual fuel consumption/total distance travelled - Fuel consumption per transport work = total annual fuel consumption/total transport work - Emissions within ports at berth - Total distance travelled - Total time spent at sea - CO 2 emissions per distance = total annual CO 2 emissions/total distance travelled - CO 2 emissions per transport work = total annual CO 2 emissions/total transport work - Total transport work! Cargo on-board shall not be reported in the emissions report 32

33 A Welcome note & Agenda B EU MRV: Background & Regulatory Framework C EU MRV Monitoring: Basic rules & Principles D EU MRV Monitoring Plan: Quick overview E EU MRV Reporting F EU MRV Roadmap for shipping companies G Comparison between EU MRV and IMO DCS H About Verifavia Shipping 33

34 EU MRV Road Map for ship operators - Ship Energy Efficiency Management Plan SEEMP - Energy Efficiency Design Index EEDI GAP-Analysis - Draft Monitoring Plan - MRV-(Super)-Ready Certificate - Preparation of Monitoring Plans (MPs) - Independent assessment of MPs - Assessment reports Preparation of Emissions Reports (ERs) - Independent verification of ERs - Document of Compliance (DOC) Monitoring of fuel, carbon emissions, cargo, and other relevant data on a per-voyage basis for each ship as outlined in the MPs

35 Monitoring Plan (MP) assessment 6 steps to become MRV Compliant Drafting of one MP for each Vessel Family Initial Assessment of Vessel Family MPs & office visit Closing of Findings of Vessel Family MPs / Drafting of MPs for all ships Assessment of individual MPs per Vessel Closing of Findings Assessment Reports per Vessel Shipping company Shipping company Shipping company 35

36 A Welcome note & Agenda B EU MRV: Background & Regulatory Framework C EU MRV Monitoring: Basic rules & Principles D EU MRV Monitoring Plan: Quick overview E EU MRV Reporting F EU MRV Roadmap for shipping companies G Comparison between EU MRV and IMO DCS H About Verifavia Shipping 36

37 IMO fuel oil consumption data collection system Amendments to MARPOL Annex VI Chapter 4 adopted at MEPC70 Entry into force : 1 March 2018 First reporting period : 2019 calendar year A 3-step process Step 1 Data collection Step 2 Data analysis Step 3 Further measures, if required 37

38 IMO fuel oil consumption data collection system What it means? Ships above GT will submit annual reports on fuel consumption and transport work to their Flag Administration Methodology to be included in SEEMP Administrations will issue a Statement of Compliance to ships Administrations will submit aggregated data to IMO for anonymized publication New guidance from IMO: 2016 Guidelines for the development of SEEMP adopted at MEPC70 (SEEMP will have to be updated prior calendar year 2019) Draft Guidelines for Administration data verification procedures under development (adoption expected at MEPC71 in May 2017) 38

39 EU MRV and IMO fuel data system compared Scope EU MRV Ships GT or above Voyages to / from EEA port of calls IMO DCS Ships GT or above All voyages Starting year Monitoring EU MRV Monitoring Plan Updated SEEMP Reporting Fuel consumption (port / sea) Transport work (actual cargo carried) Distance Time Fuel consumption Distance Time Verification Independent accredited verifiers Flags administration (work in progress) Further down the line Compliance Document of Compliance (June 2019) Statement of Compliance Publication Distinctive public database Anonymous public database 39

40 A Welcome note & Agenda B EU MRV: Background & Regulatory Framework C EU MRV Monitoring: Basic rules & Principles D EU MRV Monitoring Plan: Quick overview E EU MRV Reporting F EU MRV Roadmap for shipping companies G Comparison between EU MRV and IMO DCS H About Verifavia Shipping 40

41 Who are we? We are the V of MRV Verifavia is a global independent environmental verification, certification and auditing body for aviation, airports and maritime transport (shipping and ports). 41

42 About our double accreditation process Verifavia Shipping expects to be one of the first fully accredited EU MRV verification bodies - We are already accredited by UKAS according to ISO for Aviation since We requested an extension to scope to include Shipping from UKAS - We expect to be accredited on 1 st March Timeline of the accreditation process First Meeting Application Application Review Assessment Accreditation January 2016 March 2016 Q January 2017 March

43 Verifavia Shipping is an active member of the Commission s expert groups on MRV responsible for drafting the Delegated & Implementing Acts Verifavia Shipping is also the task leader of the Commission s task force on the verification of the emissions report Objective of the working group is to draft the guidance document addressed to verifiers on how to verify an emission report Representatives from major classification societies are part of the working group which is led by Verifavia Shipping CEO. First meeting July 2015 Second meeting October 2015 Third meeting January 2016 Fourth meeting April 2016 Fifth meeting June 2016 Draft Acts & Consultation process Aug 2016 Coming into force Dec

44 Our EU MRV services MRV regulatory information GAP-Analysis audits Independent carbon emissions verification Monitoring Plan assessment EU MRV IT system certification 44

45 Verifavia Shipping provides its clients with an Extranet to facilitate the online assessment of Monitoring Plans 45

46 EU MRV references GAP-Analysis audits, Assessments of Monitoring Plans Verifavia Shipping is one of the first independent verifiers to conduct GAP-Analysis audits against the requirements of the EU MRV Regulation (CCWG verification) 46

47 EU MRV IT system certification audits Verifavia Shipping is the world s market leader working with global ICT providers in the independent certification of EU MRV IT systems 47

48 Press Verifavia is frequently quoted in the shipping media on EU MRV and also regularly publishes its own articles Verifavia Shipping in the press 48

49 Events - Verifavia is regularly invited to speak on EU MRV at international conferences, workshops and seminars Shipping MRV Verification Case Study, ESSF sub-group on MRV, European Commission, Brussels, 20 January 2016 Verifavia Shipping is the leading expert on EU MRV, speaking at Shipping MRV, Armateurs de France, Paris 27 January 2016 What are the challenges for verification? 13th Annual Green Ship Technology, Copenhagen, 18 March 2016 Shipping MRV, Green4Sea Forum, Athens 6 April 2016 Shipping MRV, 38th Propulsion & Emissions Conference, Hamburg, May 2016 EU MRV Masterclasses, POSIDONIA 2016, Athens, June

50 Events - Verifavia is regularly invited to speak on EU MRV at international conferences, workshops and seminars EU MRV Seminar, SMM 2016, Hamburg, 6 September 2016 Verifavia Shipping is the leading expert on EU MRV, speaking at Development of an EU MRV Monitoring Plan: content and challenges for shipown-ers and operators, EU MRV Seminar, UK Chamber of Shipping, London, 29 September 2016 EU MRV, Viswalab Technical Seminar, Singapore, 11 October 2016 Marine, Fuels and Lubricants, Rotterdam, December 2016 ECSA, 15 February 2017 Green Ship Technology Conference (GST), Copenhagen, 24 March

51 Our global presence Vancouver Paris & London Athens Delhi 51

52 Why choose Verifavia Shipping? Truly independent verification services Flexible, efficient, competitive & innovative Specialised services with dedicated expertise Multi-lingual & global services Extranet for assessment of MPs Expected to be the world s first fully accredited verifier Recognized EU MRV expert in global shipping media Task leader of Commission s task force on verification 52

53 Q&A 53

54 Thank You Get in touch with us! Julien Dufour, CEO Nikolas Theodorou, Managing Director Nicolas Duchêne, Technical Director Stylianos Smyrlakis, Technical Expert Verifavia Shipping (Hellas): Par. Leof. Vouliagmenis 12, Voula (Lefkados 12) (Greece) Verifavia (UK) Ltd. : Wenlock Road, London N1 7GU (UK), Verifavia SARL: +15 rue des boulangers, Paris (FR),