Q&A on greenhouse gas emissions from shipping

What does the Commission’s progressive approach to addressing maritime emissions consist of?

The strategy set out in the Communication consists of three consecutive steps:

1. The system of MRV of emissions proposed today;

2. The setting ofreduction targets for the maritime transport sector;

3. Theapplication of further measures, including market-based measures (MBMs), in the medium to long term.

Priority is given to establishing an MRV system because it is necessary for the other two steps. Robust MRV of emissions will deliver robust data for setting emission reduction targets. It is also a prerequisite for any market-based measure or efficiency standard, whether applied at EU level or globally.

What are the costs and benefits of the proposed MRV system?

The Commission’s analysis of the proposal shows the MRV system will be economically profitable for the shipping sector. The predicted fuel cost savings would outweigh the cost of monitoring, reporting and verification of emissions, leading to net cost savings of up to 1.2 billion a year by 2030.

The MRV system would also reduce emissions byup to 2% compared with a ‘business as usual’ scenario. By providing reliable data on ships’ fuel consumption and emissions, the system would encourage the sector to implement technical and operational measures for reducing emissions and fuel consumption at no (or even negative) cost. Such measures are already available but not sufficiently used. Their uptake is currently hampered by market barrierssuch as lack of information and lack of access to finance.

While yielding environmental and economic benefits, the EU MRV system is also designed to contribute actively to an IMO agreement on global measures to reduce shipping emissions based on MRV systems.

What obligations will the Regulation impose on ship owners, and by when?

The monitoring and reporting obligations will apply by calendar year.

Annual emissions and other relevant information from shipping activities will need to be collected from 2018 onwards. This will be done according to the methodology agreed in each ship’s monitoring plan. The data will then need to be verified by an accredited verifier and reported to the Commission and to the ship’s flag State.

Verified emission reports for shipping activities in 2018 covered by the EU Regulation are to be submitted by 30 April 2019.

By 30 June of each year, starting in 2019, ships covered by the Regulation will have to carry on board a valid document confirming compliance in the previous year with the monitoring and reporting obligations. Flag state and Port State authorities will check ships’ compliance through inspections.

Ship owners can choose from a list of four monitoring methods. Depending on their choice, monitoring could be entirely based on documents and data which are already carried on all ships today, such as bunker fuel delivery notes.

When will the Regulation enter into force?

The proposal will be discussed by the European Parliament and Council under the co-decision procedure. This can take one to two years before agreement is reached and legislation adopted.

The Commission proposes that the Regulation enters into force in July 2015. This would allow the Commission and Member States to prepare the necessary measures through implementing and delegated acts, but no specific obligations for ship owners would arise at that moment. The MRV obligations will apply to shipping activities carried out from 1 January 2018.

What if IMO adopts a global framework for maritime emissions?

The likely timeline for the Regulation’s adoption leaves ample opportunity for the IMO to make progress before the EU rules come into force. Moreover, in the draft Regulation the Commission specifically states its intention to propose amendments to take into account progress towards an international agreement on global measures to reduce GHG emissions from maritime transport.