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EU MRV Regulation

Overview & Update

Verify. Comply. Navigate.

Hamburg, 6 September 2016


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The Regulation 2015/757 came into force on 1 July 2015

M Monitoring

of fuel consumption,
R Reporting CO2 emissions, and
transport work of ships

V Verification

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Commissions 3-step strategy to cut GHG emissions from maritime transport
announced in June 2013

Monitoring, reporting and verification of carbon


Step 1 emissions from ships + publication of data

Emissions reduction targets for the maritime


Step 2 transport sector

Further measures, including Market-Based


Step 3 Measures (MBM)

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Commissions objectives of the EU MRV

Contribute to building an international data collection system

Set carbon efficiency standards for existing ships

Cut CO2 emissions from the journeys covered by up to 2%, compared with a
business as usual situation

Reduce net costs to owners by up to 1.2 billion per year in 2030

Provide insights into the performance of individual ships, their associated


operational costs and potential resale value

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EU MRV includes the Regulation 2015/757

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and the Delegated & Implementing Acts, which drafts were published in
July 2016 for public consultation

Consultation ended on 25/26 Aug. Acts will now be finalized and will
enter into force before 31 December 2016
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Which ships are concerned by the EU MRV Regulation?

Ships exceeding 5000 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

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Who is the accountable entity?

Every ship must:

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)
The accountable entity is the Ship

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Which parameters must be monitored and reported?

Fuel Fuel Time Distance Cargo Transport Energy


Consumption Consumption at Sea Sailed On-board work Efficiency
at Sea at berth parameters

Emission sources to consider:


- Main engines
- Auxiliary engines
- Boilers
- Gas turbines
- Inert gas generators

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Which are the monitoring methodologies available?

Four available monitoring methodologies available

Method B Method C
Method A Method D
Bunker fuel tank Flow meters for
Bunker Fuel Delivery Direct CO2 emission
monitoring on applicable
Note (BDN) and measurements.
board combustion
periodic stocktakes
processes
of fuel tanks

CO2 Emissions = Fuel consumption * Emission factor

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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

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Cargo parameter depends on the type of ship

Ship Type Cargo to be monitored per ship type

Oil tankers, chemical tankers, gas


carriers, bulk carriers, refrigerated Actual mass of the cargo on-board
cargo ships and combination carriers

LNG carriers Volume of the cargo on discharge

Pax ships Number of passengers

Occupied lane-meters * default weight


Ro-ro ships OR, nb of cargo units * default weight
OR, actual mass of the cargo on-board
Actual mass of the cargo
Container ships
OR, nb of TEU * default weight
Passengers: number of pax
Ro-pax
Freight: same Ro-ro ships

Con-ro ships Volume of cargo on-board

Vehicle carriers and general cargo ships Mass of cargo and / or deadweight carried

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What are the key deadlines?

Before the start of the


monitoring period Monitoring period After the monitoring period Deadline Deadline
(2017) (2018 onwards) (Jan-Apr 2019 Onwards) 30 April 2019 30 June 2019

Monitoring Reporting Submission


Issuance of Document of
Drafting Assessment of fuel of fuel of verified Document of
Verification compliance
Monitoring of the consumption, consumption, information compliance
Opinion kept on-board
Plan Monitoring plan CO2 emissions CO2 emissions to Commission issued
Statement the ship
& transport work & transport work & Flag State

Is the Emissions KEY DATES


Is the Monitoring Report in line with End of 2016: Implementing / Delegated Acts
Plan in line with the Regulation and
NO the Regulation? YES NO YES Start of 2017: Accreditation of verifiers
the Monitoring Plan?
31.08.2017: Final date to submit Monitoring Plan to verifier
01.01.2018: Start of the 1st Reporting Period
31.12.2018: End of 1st Reporting Period
Revision of the
RESPONSIBILITIES Emissions 30.04.2019: Final date to submit verified Emissions Report
Report to Commission and Flag State
Shipping Company Verifavia Shipping
www.verifavia-shipping.com 30.06.2019: On-board Document of Compliance
Call for action

EU MRV requirements are now fully defined, it is


time to engage into the MRV compliance process!

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EU MRV Monitoring Plan
Content and challenges for ship operators

Verify. Comply. Navigate.

Hamburg, 6 September 2016


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The Monitoring Plan is a fundamental document of MRV

The Monitoring Plan is a ship-specific document describing the procedures in place to


monitor, collect, control and report data for the EU MRV

The Monitoring Plan is a requirement of the EU MRV Regulation Art 6

The Monitoring Plan must be submitted before 31 Aug 2017 to an independent verifier for
assessment

Assessment must be successfully completed before 31 Dec 2017

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The Monitoring Plan can be designed based on existing infrastructure and
statutory documents

Where relevant references should be made to compatible monitoring elements from existing
management systems (e.g. SMS, SEEMP, EMS)

The MP demonstrates how the ships MRV system is compliant with the EU MRV Regulation.

The MP compiles all information on how the ships MRV system works, and must be
complete, accurate, relevant and compliant

The MP provides sufficient information to allow for efficient verifications for both the ship
operator and the verifier

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The Monitoring Plan is divided into 6 sections

Part A Versions

Part B Basic data

2017
Part C Activity data

- Monitoring of fuel, carbon emissions, cargo


Part D Data gaps and other relevant data on a per-voyage basis
for each ship according to Monitoring Plan

- Preparation of Emission Report Part E Management


- Independent verification of Emission Report
- Document
Part FofConformity
Further (DOC)
information NB: some sections can be common for
all the fleet of an operator.
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Part B Basic data (identification of ship and company)

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Part B Basic data (emission sources and fuels)

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Part C Activity data (fuel consumption)

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Part C Activity data (measurement and measuring equipment)

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Part C Activity data (voyages, time and distance)

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Part C Activity data (cargo)

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Part D Data gaps

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Part E - Management

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Call for action

All the requirements of the Monitoring Plan are


now clearly specified.

A draft Monitoring Plan template exists.

We recommend ship operators to develop their


Monitoring Plans and have them assessed by a
verifier without delay to avoid last minute
surprises.

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EU MRV Regulation
How to be MRV-Ready?

Verify. Comply. Navigate.

Hamburg, 6 September 2016


www.verifavia-shipping.com
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EU MRV Roadmap for ship operators

- Pre-verification GAP-Analysis
Initial preparation phase 2015-2016 - Draft Monitoring Plan
- MRV-Ready Certificate

- Final Monitoring Plan


- Conformity assessment of Monitoring Plan 2017 Legal preparation phase
vs. EU MRV Regulation (incl. Acts) and
company procedures

- Monitoring of fuel, carbon emissions, cargo


First monitoring period - 2018 and other relevant data on a per-voyage basis
for each ship according to Monitoring Plan

- Preparation of Emission Report


- Independent verification of Emission Report 2019 First reporting period
- Document of Conformity (DOC)

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GAP-Analysis Advantages for ship operators

03
02 Advance on the
assessment of the
Early identification
Monitoring Plan
of required corrective
actions
04
Communication /
marketing
advantage
01
Preparation for EU
MRV Regulation 05
Compliance
Without
delay

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GAP-Analysis Responsibilities

Drafting of GAP-Analysis + Closing of GAPs MRV-Ready


Monitoring Plan Verification of Certificate
& Emissions Emissions
Report Report

Ship Operator Ship Operator

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Aim of verification is to check consistency between Regulation, Monitoring
Plan and existing company procedures

Conformity Check

Monitoring EU Shipping
Plan MRV Regulation

Existing company
procedures

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The pre-verification GAP-Analysis process

Assessment of Monitoring Plans and verification of Emissions Reports are carried out in accordance with the
ISO 14065 standards, the EU MRV Regulation, and the Delegated & Implementing Acts

Strategic Risk Verification Process Data Internal Technical MRV-Ready


analysis analysis Plan Verification Verification Verification Review Certificate
Report

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Phases

In practice, we will conduct the verification in three main phases.


Audit conducted on-site or remotely through email communication and conference calls.

PHASE 1 PHASE 2 PHASE 3

- Preparation - Interviews, observation of IT - Full data analysis


- Strategic & risk analysis systems & key processes - Technical review
- Verification plan - Data sampling, audit trails - GAP-Analysis report
- Initial data analysis (for an - Review of documents - Pre-verification opinion
MRV representative ship) statement

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Phase 3 Deliverables

GAP Analysis Report


Detailed analysis of conformity of the companys procedures against each item
of the EU MRV Regulation

Issues Log
Includes misstatements, non-conformities, recommendations for improvements
and observations

Pre-verification opinion statement (reasonable assurance)


At least for one representative ship

MRV-Ready Certificate (specific to a family of ships or per vessel)


If gaps are closed and if positive verification opinion for at least one ship of the
family or extend this for every vessel of the same family at your request.

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Example of conclusions from GAP-Analysis audits realized

- Incorrect identification of voyages according to the EU MRV definition of ports of call

- Wrong application of EU MRV fuel consumption methods

- Missing parameters for the reporting (fuel consumption at berth)

- Missing parameters for transport work (cargo unloaded at ports of call)

- IT system breakdown leading to data gaps

- Lack of control activities

- No methodology for the correction of data gaps

- Etc.

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MRV-Ready Certificate

Verifavia Shipping can issue an


MRV-Ready Certificate to
ship operators

ship operators

01.10.2016

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About our accreditation

Verifavia Shipping expects


to be one of the first ever
EU MRV verification
- Already accredited by UKAS according to ISO 14065 for Aviation

bodies to be accredited - Requested extension to scope to include Shipping


4599

Timeline of the accreditation process

First Meeting Application Deadline Application Review Accreditation


January 2016 March 2016 Q4 2016 April 2017

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Call for action

Become MRV-Ready now: boost your sustainability


marketing, ensure compliance in advance, and
outrun your competitors !

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Thank You
Get in touch with us!
Julien Dufour, CEO
Nicolas Duchne, Technical Director

Verifavia (UK) Ltd. :


20-22 Wenlock Road, London N1 7GU (UK)
+44 207 117 2540
Verifavia SARL:
+15 rue des boulangers, 75005 Paris (FR)
+33 665 697 489
julien.dufour@verifavia-shipping.com
nicols.duchene@verifavia-shippping.com
www.verifavia-shipping.com

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Q&A
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