Reducing emissions from the shipping sector
Policy
The EU is calling for a global approach to reducing greenhouse gas emissions from international shipping – a large and growing source of emissions. As a first step, large ships using EU ports will be from 2018 required to report their verified annual emissions and other relevant information.

Port of Oakland, California, USA© Digital Vision/Digital Vision/Digital Vision
Maritime transport emits around 1000 million tonnes of CO2 annually and is responsible for about 2.5% of global greenhouse gas emissions (3rd IMO GHG study).

Shipping emissions are predicted to increase between 50% and 250% by 2050 – depending on future economic and energy developments.

This is not compatible with the internationally agreed goal of keeping global temperature increase to below 2°C compared to pre-industrial levels, which requires worldwide emissions to be at least halved from 1990 levels by 2050.

Untapped potential

Ships’ energy consumption and CO2 emissions could be reduced by up to 75% by applying operational measures and implementing existing technologies (2nd IMO GHG study).

Many of these measures are cost-effective and offer net benefits, as reduced fuel bills ensure the pay-back of any operational or investment costs.

Further reductions could be achieved by implementing new innovative technologies.

Towards global action

The EU and its Member States have a strong preference for a global approach led by the International Maritime Organization (IMO) as this will be most effective.

Considerable efforts to agree such an approach have been made over recent years within both the IMO and the United Nations Framework Convention on Climate Change (UNFCCC) also with a view to ensure a fair contribution of the sector to the objective of the Paris agreement to limit the average increase of the temperatures to +1,5°C

In 2016 the IMO in its MEPC 70 meeting reached an agreement on a global data collection system as the next step in their action to tackle CO2 emissions Draft guidelines for administration, data verification procedures, and draft guidelines are still yet to be developed, that work will continue through a correspondence group set to meet mid- 2017. Also MEPC 70 agreed to develop a Road Map for addressing CO2 emissions from international shipping, with initial CO2 reduction commitments to be agreed to by 2018.

EU support to IMO energy efficiency project

The European Commission contributes €10 million funding to an EC-IMO energy efficiency project.

The 4-year project aims to establish Maritime Technology Cooperation Centres in 5 regions: Africa, Asia, the Caribbean, Latin America and the Pacific.

Through technical assistance and capacity-building, the centres will promote the uptake of low carbon technologies and operations in maritime transport in the less developed countries in the respective region.

This will also support the implementation of the internationally agreed energy efficiency rules and standards (EEDI and SEEMP).

EU strategy

The Commission’s 2011 White Paper on transport suggests that the EU’s CO2 emissions from maritime transport should be cut by at least 40% from 2005 levels by 2050, and if feasible by 50%. However, international shipping is not covered by the EU’s current emissions reduction targets.

In 2013, the Commission set out a strategySearch for available translations of the preceding link••• for progressively integrating maritime emissions into the EU’s policy for reducing its domestic greenhouse gas emissions.

The strategy consists of 3 consecutive steps:

Monitoring, reporting and verification of CO2 emissions from large ships using EU ports
Greenhouse gas reduction targets for the maritime transport sector
Further measures, including market-based measures, in the medium to long term.
First step: monitor and report emissions

The MRV shipping Regulation adopted in April 2015 creates an EU-wide legal framework for the monitoring, reporting and verification of CO2 emissions and other relevant information from maritime transport. It also helps the EU generate momentum for the best possible outcome in the international discussions. Please note that further to the Decision 215/2016 of the EEA Joint Committee from 28th October, the MRV shipping Regulation has been included in the EEA agreement, all references in the MRV shipping Regulation to Member States should be interpreted as including all relevant EEA States (the EU Member States, Iceland and Norway).

It requires large ships (over 5 000 gross tonnes) irrespective of where the ship or the company is registered calling at EEA ports from 1 January 2018 to monitor their CO2 emissions and other relevant information emitted on journeys to, from and between EEA ports of calls, and also when in EEA ports of call.

In order to complete the MRV shipping legal framework, the Commission adopted two delegated Regulations updating the monitoring methods and rules in Annexes I and II (Delegated Regulation 2016/2071) and further specified its rules on verification and accreditation of MRV shipping verifiers (Delegated Regulation 2016/2072).

Also two Implementing Regulations were adopted entered into force in November 2016.

By 30 August 2017 submit to an accredited MRV shipping verifier aMonitoring Plan, consisting of complete and transparent documentation of the monitoring method and procedures to be applied for each of the ships under its responsibilities; MRV companies shall prepare monitoring plans using a template corresponding to the model in Annex I of Implementing Regulation (EU) 2016/1927 , (for more information see also our FAQs document);
From 1s January 2018, monitor and report to an accredited MRV shipping verifier, data on each ships’ CO2,, fuel consumption and other parameters, such as distance, time at sea and cargo carried, so as to determine the ships’ average energy efficiency;
From 2019,by 30 April of each year submit to the Commission through THETIS MRV (a dedicated European Union information system currently under development by the European Maritime Safety Agency) a satisfactorily verified Emissions report for each of the ships concerned
From 2019, by 30 Juneof each year ensure that, all ships having performed activities in the precedent reporting period and visiting EU ports, carry on board a document of compliance issued by THETIS MRV, following the agreement of an accredited MRV shipping verifier. This obligation might be subject to inspections by Member States’ authorities.
In order to complete the MRV shipping legal framework, the Commission amended Regulation 2015/757 so as to update the monitoring methods and rules in Annexes I and II to Regulation 2015/757, and further specified its rules on verification and accreditation of MRV shipping verifiers. These two delegated Regulations aim at helping companies to fulfil their monitoring and reporting obligations in a harmonised way, and set additional rules for verification and accreditation of MRV shipping verifiers.

Also two Implementing Regulations have been adopted by the Commission and will enter into force in November 2016.

Implementing Regulation (EU) 2016/1928 on determination of cargo carried for categories of ship others than passengers ro-ro and container ships pursuant to Regulation (EU) 2015/757
Implementing Regulation (EU) 2016/1927 setting templates for monitoring plans, emissions reports and documents of compliance pursuant to Regulation (EU) 2015/757
Experts Consultation related to MRV shipping

As part of the preparations for the MRV shipping Delegated and Implementing Regulations, an experts’ consultation process took place between July 2015 and May 2016, under the umbrella of the European Sustainable Shipping Forum (ESSF): within two “ad hoc” subgroups as follows:

subgroup on monitoring of cargo and monitoring methods and rulesSearch for available translations of the preceding link•••
subgroup on verification rules and accreditation of verifiersSearch for available translations of the preceding link•••
The two MRV shipping subgroups have provided recommendations to the Commission on the delegated and implementing acts which were endorsed by the ESSF Plenary on 28 June 2016

final report of the subgroup on recommendations on monitoring rules and methods determination of cargo carried for other ship categories and monitoring templatesSearch for available translations of the preceding link•••
final report of the subgroup on recommendations on verification issues and accreditation of verifiers processSearch for available translations of the preceding link•••
As part of the preparations for the MRV shipping implementation these two experts’ subgroups will develop further guidance on a number of monitoring, reporting and verification aspects by spring 2017.

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