The EU MRV regulations form the foundation for the EU ETS, with emissions data serving as the basis for the allowances shipping companies must purchase. Even though the EU ETS currently applies to ships of 5000 GT and above, it is expected that general cargo and offshore vessels between 400 and 5000 GT will be included from 2027.
A recent circular by the ST. Vincent and the Grenadines explains how these two regulations will work together effectively. The EU MRV applies to ships of 5,000 GT and above, regardless of their flag, conducting commercial voyages to or from ports in the European Economic Area (EEA). EEA includes EU plus Norway and Iceland.
It requires the per-voyage and yearly monitoring of CO2 emissions to a central database and an annual public disclosure of the data in a verified annual ship emissions report, as well as the monitoring of other parameters, including the quantities of cargo carried, distance travelled and time spent at sea.
Starting from 1 January 2025, the amended EU MRV regulations will be extended to cover general cargo vessels with a gross tonnage of 400 to 5000 and offshore vessels of 400 GT and above.
Since January 2024 the EU ETS has been extended to cover green house gas emissions from ships of 5 000 gross tonnage and above. Shipping companies have to purchase and surrender (use) EU ETS emission allowances for each tonne of reported greenhouse gas emissions. Failure to comply will result in penalties, including fines and port entry bans.
• Inclusion of general cargo vessels and offshore vessels of 400 GT and above.
• Expansion to cover CH4 and N2O emissions.
• The deadline for submitting verified EU MRV Emissions Reports will be 31 March, instead of 30 April.
• Ships must submit their emissions data for verification earlier to comply with the new system
Steps for Operators introducing EU MRV for the first time:
This Administration strongly recommends that operators of the applicable vessels of 400 GT and above promptly address these requirements and select an accredited independent verifier to proceed with EU MRV verification.
