StormGeo Shipping Insights, February 2017
By Michael O'Brien, VP Product & Business Development
The European Union has decided to take proactive steps, ahead of the IMO, to closely monitor CO2 emissions for most vessels in excess of 5000 gross tons. Owners or vessel managers with ships that are calling ports in EU member states or intend to call ports in the EU have some important regulations and deadlines approaching.
Why is the EU implementing MRV?
In 2014 the EU mandated a target to reduce domestic greenhouse gas emissions by at least 40% compared with 1990 levels. The EU has studied data compiled by the IMO that indicates specific energy consumption and CO2 emissions of ships could be reduced by up to 75% by applying operational measures and implementing existing Technologies1. In order to reach these goals, it was decided that there must be a transparent system of monitoring, reporting and verifying CO2 emissions for the vast majority of ships exceeding 5000 gross tons that either start or end a voyage in an EU member state.
MRV details and timeline
The regulation includes four key components:
1. The ship specific monitoring plan
2. Monitoring method to collect emissions data on all shipboard combustion sources
3. Reporting method capturing voyage specific and annual emissions of CO2
4. Verification by a third party accredited entity
The monitoring plan is the most urgent issue to address at this time. The monitoring plan needs to be ship specific and explains the details of compliance including company details, technical methodologies for collecting the consumption data and subsequent CO2 emission data. This report must also identify an accredited third party verification entity and once completed the monitoring plan itself must be approved by a verifier.
Important information to know about the monitoring plan is that calculations will vary depending on cargo carried, for example; LNG, Passenger Ships and Bulk Carriers will all have unique methodologies for the calculation of transport work. Furthermore, the method for measuring fuel consumed must be identified in your plan and submitted to the verifier.
Date to remember: 31 August 2017 – deadline for submitting monitoring plan to verifier
The monitoring of fuel consumed can be handled in one of four ways as defined in EU 2015/757 Annex I. The most common method in use today is method B, which is the measurement of fuel remaining on board by tank readings. It will be important to remember that each source of combustion must be measured for voyages starting or ending in an EU member state. There are a number of rules dictating when consumption and emissions are to be measured and when they are not to be measured. For example, one situation would be when a vessel goes to anchor prior to arriving at an EU member state, the time at anchor will not require measurement of CO2 emissions for fuel(s) consumed for the purposes of MRV.
Date to Remember: 01 January 2018 – this is the date when the collection of data must start for all voyages entering/leaving EU member states for vessels subject to the regulation
The reporting needs to be conducted in accordance with articles 9, 10 and 11. Article 9 defines the details required for the per voyage calculations and article 10 defines those items required for the annual reporting. The annual report will contain the following items derived from all of the relevant voyages over the course of the reporting year:
(a) amount and emission factor for each type of fuel consumed in total;
(b) total aggregated CO2 emitted within the scope of this Regulation;
(c) aggregated CO2 emissions from all voyages between ports under a Member State's jurisdiction;
(d) aggregated CO2 emissions from all voyages which departed from ports under a Member State's jurisdiction;
(e) aggregated CO2 emissions from all voyages to ports under a Member State's jurisdiction;
(f) CO2 emissions which occurred within ports under a Member State's jurisdiction at berth;
(g) total distance traveled;
(h) total time spent at sea;
(i) total transport work;
(j) average energy efficiency2.
Date to Remember: 30 April 2019 – deadline to submit reports to verifier
Verification is a key component to MRV as it promotes transparency according the EU regulation. An important aspect to keep in mind is that EU 2015/757 article 14 states that a company can’t verify their own report. The intention behind this of course is to promote ‘independence and impartiality’. When evaluating third party vendors for your MRV solution it is important to understand that the same corporate entity will not also be conducting the verification of the reports.
Date to Remember: 30 June 2019 – On board document of compliance required.
Where does StormGeo's Shipping division fit into MRV?
StormGeo's shipping division (formerly AWT) has been collecting data, monitoring data and reporting data on fuel consumption and emissions for over twenty years. The methods of collecting data and reporting data are well established and last year were utilized on more than 56,000 voyages.
We have carefully evaluated the regulations of EU 2015/757 and have developed systems that will collect and report the data in strict accordance with this regulation. To ensure ship owners and managers can trust that the reporting will be handled properly, StormGeo has embarked on becoming accredited as an MRV compliant service provider. Furthermore, StormGeo is partnering with a leading independent third party verification company so that your MRV needs can be completely handled from assistance with completion of the monitoring plan to submission of data to the verification entity.
StormGeo is continuously adapting to regulations and looking at innovative, cost effective solutions to assist the maritime industry with compliance.
1. EU 2015/757 item (9)
2. EU 2015/757 Article 10 Items (a) through (j)