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Technical Notices

Amendments to EU-MRV extended to ships from 400 GT, and EU-ETS for shipping sector collection system

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From 1 January 2025, the amended EU MRV regulations will be extended to general cargo vessels with a gross tonnage (GT) of 400 to 5000 and offshore vessels of 400 GT and above.

The overall purpose of EU MRV emissions collection and reporting is to assess the environmental impact of maritime transport and to serve as a basis for the EU ETS and Fuel EU Maritime regulations.

THE EU MRV – A SUMMARY

The EU MRV regulation establishes rules, whereby shipping companies report annually, and accredited independent verifiers verify, the reported amounts of carbon dioxide (CO2) emissions and other relevant information from ships calling at EEA ports.

In 2023, as part of the package of measures to reduce emissions from the maritime transport sector, the MRV regulation was amended, and after 1 January 2024, the scope of the MRV regulation has expanded and apart of the CO2 emissions to include CH4 and N2O emissions from shipping.

Furthermore, from 1 January 2025, the amended EU MRV regulations will also apply to general cargo ships between 400 and 5000 GT and offshore ships of 400 GT and above.

 EU MRV REQUIREMENTS

Monitoring plan (MP)

In accordance with the EU MRV regulation, a vessel’s Monitoring Plan (MP) must be verified by an independent and accredited verifier. The content of the MP is predefined by the EU MRV regulation and includes a description of the method chosen to monitor and report emissions.

Emissions Report

The Emissions Report contains information about the amount of consumed fuel and the distance travelled, as well as the cargo carried on voyages to, between and from EU ports.

 Document of Compliance (DoC)

Upon submission of the aggregated Emissions Report, the Verifier shall verify it against your voyage log abstract data, bunkering data and external data. The verified Emissions Report for a year must be submitted by the shipping company to the European Commission by 31 March the following year. By 30 June, the DoC on the Emissions Report must be downloaded by the shipping company from EU’s THETIS-MRV and carried on board.

 EU-ETS FOR SHIPPING SECTOR

EU Emissions Trading System to the shipping sector were adopted, with effect from 1 January 2024. Under these amendments, ships of 5,000 Gross tonnage and above, arriving at or departing from ports within the jurisdiction of any EEA member state , regardless of the Flag state, will be required to purchase and surrender allowances equivalent to EU ETS applicable GHG emissions on an annual basis. Failure to do so will result in penalties such as fines and a ban on entry into ports within the EEA territories.

How the EU MRV and EU ETS work together

The EU MRV and the EU ETS are now integrated, and emissions data from the existing EU MRV is the basis for the EU ETS. Even though the EU ETS is not yet mandatory for ships smaller than 5000 GT, general cargo and offshore ships of 400 to 5000 GT will most likely be included from 2027.

Starting in 2025, the shipping company must submit verified aggregated emissions data at the company level to the administering authority by 31 March of each year. This data is to be based on the MRV Emissions Reports for the previous year. In practice, this means the ship’s Emissions Report needs to be verified and submitted a month earlier, at the latest, than under the current MRV system.

From 2025, the deadline for a verified EU MRV Emissions Report submission to the EC will be 31 March, instead of 30 April. After successful verification of the fleet, MRV Emission Reports and the Company Emission Verification Report containing all the fleet’s EU ETS scope emissions must be submitted to the administering authority by 31 March each year.

While the EU MRV started as a data collection compliance regulation only, the EU MRV has consequences far beyond data collection, and the financial consequences of incorrect reporting, etc. can be significant.


RECOMMENDATION TO OPERATORS OF INSB CLASS CERTIFIED SHIPS

INSB Class, at least presently is not a MRV Verifier, strongly recommends to all operators of INSB certified vessels of 400 GT and above, falling under the above requirements, to promptly address these requirements and select an accredited independent Verifier to proceed with the EU MRV Verification.


 

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