Dr. writes. Nikos Mazarakis
Professor of Naval Meteorology
According to Directive 2009/29/EC and Decision No. 406/2009/EC of the European Parliament all merchant ships of over 5000 GT are obliged to participate in an integrated Monitoring system (Mmonitoring), Reporting (Reporting) and Verification (Verification) from 2018 onwards. In this article we will try, through questions and answers, to give a simple and concise picture of this new regulation and the obligations that shipping companies have for its implementation.
1. What is the MRV system?
The MRV system is a mandatory procedure for all shipping companies with ships of over 5000 GT calling at European Union ports. The main purpose of developing the MRV system is to record CO2 emissions from maritime transport. CO2 is considered one of the main greenhouse gases that has the effect of enhancing the natural greenhouse effect, resulting in an increase in global temperature and climate change.
2. Why should CO2 emissions from maritime transport be recorded?
International maritime transport remains the only mode of transport not included in the European Union's greenhouse gas emission reduction commitment, while CO2 emissions from international maritime transport related to the Union increased by 48 % between 1990 and 2007. According to data provided by the IMO, the specific energy consumption and CO2 emissions of ships could be reduced by up to 75 % through the implementation of operational measures and existing technologies. At the same time, the binding target for EU Member States to reduce domestic greenhouse gas emissions by 40% by 2030, compared to 1990 levels, is in force.
3. Does the MRV system apply to the whole world and all ships?
The answer is no. The MRV system concerns: 1) ships moving between ports belonging to EU Member States, 2) ships leaving a port belonging to an EU country and having as their destination a port outside the EU and 3) ships arriving at a port of an EU country and coming from a port outside the EU. In simple terms, any ship over 5000 GT arriving at or departing from a port within the EU is obliged to participate in the MRV system. This applies to ALL the ships INDEPENDENTLY flag. Only ships that do not serve commercial purposes or transport passengers, e.g. icebreakers, are excluded. Of course, we should emphasize that in the near future the implementation of the system throughout the world is considered almost certain.
4. Why was the 5 000 GT tonnage limit for a ship to participate in the system established?
Ships over 5000 GT constitute 55 % of all ships calling at Union ports and account for around 90 % of the relevant emissions. Choosing a lower threshold would result in a higher administrative burden, while a higher threshold would limit the coverage of emissions and, consequently, the environmental effectiveness of the MRV system.
5. How is the MRV system implemented by a shipping company?
Every shipping company covered by the regulation (see question 3) will have to implement the MRV system and submit emissions reports on an annual basis. In simpler terms, it will have to develop a system for recording and reporting emissions following one of the four recording methods set out in the EU Directive and also find an independent body to verify the reports it submits. Verification by accredited verifiers should ensure that the monitoring plans and emissions reports are correct and meet the requirements of this regulation. Ships will have to have a document of compliance issued by a verifier to demonstrate compliance with the monitoring, reporting and verification obligations.
6. What is the deadline for a shipping company to join the MRV system?
All shipping companies covered by the regulation, without exception, must submit a monitoring plan to the auditors for each of their ships by 31 AUGUST 2017, indicating the chosen method of monitoring and reporting on CO2 emissions and other relevant information. For a new ship acquired after 31or August there is a 2-month window after acquisition. Shipping companies must use standardized, standards-based monitoring plans for this purpose.
7. When do shipping companies start recording emissions?
After the submission of the plan (see question 6), the recording of emissions begins from 1or JANUARY 2018. From this date onwards, for each ship arriving at or departing from a port under the jurisdiction of a Member State, and for each route between these ports, the following parameters must be recorded:
- port of departure and port of arrival, with date and time of departure and arrival
- quantity and emission factor for each type of fuel used, in total
- CO2 emissions
- distance traveled
- time spent at sea
- transported cargo
- transportation project
8. When are reports submitted for each ship?
The reports must be submitted to the verifiers no later than 30 APRIL of the year following the year of recording. Thus, for the year 2018, the reports must be submitted no later than 30 April 2019. The verifier then assesses the compliance of the CO2 emissions report with the requirements of the MRV system and, if everything is correct, issues a verification report stating that the emissions report has been verified and found satisfactory. This process and the issuance of the compliance certificate must be completed no later than 30 JUNE of the year following the year of recording. Thus, by 30 June 2019, all ships must have the compliance certificate.
The figure below will help you better understand all the deadlines related to the MRV system.
9. Are there sanctions if a company does not implement or comply with the MRV system?
Of course, there will be sanctions, which are established separately by each EU member state. Although these sanctions are not yet known, as member states must have established the sanctions no later than 1or July 2017, according to the EU Directive, in the case of ships that have not complied with the monitoring and reporting requirements for two or more consecutive reporting periods and where compliance has not been achieved by taking other enforcement measures, the competent authority of the Member State of the port of entry may issue eviction order which shall be notified to the Commission, the European Maritime Safety Agency, the other Member States and the flag State concerned. The issuance of an expulsion order shall entail that all member states prohibit the entry of the ship which the order concerns in any of their ports, until the company fulfills its monitoring and reporting obligations.
10. Will the emissions data relating to my company's ships be publicly available?
Certainly, as the European Commission should, from 2019 and for each year, publish an annual report on CO2 emissions and other relevant information for the maritime transport sector, including aggregated and explained results, with the aim of informing the public and enabling the assessment of CO2 emissions and energy efficiency of maritime transport by size, type of ship, activity or other category considered relevant. This information will be accessible to any interested party.
11. How can I implement the MRV system in my own company?
As the company's representative in Greece StormGeo, which is the largest private weather company in the world, I would like to inform you that we have all the appropriate tools to implement the regulation at minimal cost (special prices for program users). Bon Voyage SystemOur company undertakes the entire process of recording emissions, compiling annual reports and obtaining the compliance certificate from the certified auditor. Verifavia with whom we collaborate. And all this with minimal procedures, a simple way of recording using a single application.
12. Is the MRV system developed by StormGeo difficult to use?
Of course not! The MRV system that has develop StormGeo relies exclusively on the use of a simple noon reporting tool which the captain completes daily by sending the report to our company. We undertake all the other procedures up to the final stage which is the acquisition of the compliance certificate. At the same time, the shipping company has easy and quick access to all MRV data concerning its fleet, through our online platform called FleetDSSUsing this platform with their unique password, each user has the opportunity to obtain all the detailed information they need as shown in the image below:
If you would like more information about the integrated MRV system offered by StormGeo, you can call us at 2105766859 or 6978052622 or send us an email at Nikos.Mazarakis@stormgeo.com