Significant Changes to EU MRV Regulation- What's Changing with the Expansion?

As the maritime industry moves towards a more sustainable future, significant changes in regulations are underway. One of these changes is the expansion of the EU MRV (monitoring, Reporting, and Verification) Regulations to include general cargo vessels and offshore vessels.?

A Brief Overview of the MRV Regulation

?In 2015, the EU implemented Regulation (EU) No 2015/757, which aimed to monitor, report, and verify CO? emissions from large ships (those exceeding 5,000 gross tonnages) calling at EEA ports. This regulation sought to decarbonize the maritime transport sector and promote transparency.?

What's Changing with the Expansion?

?Starting January 1, 2024, the MRV Regulation has broadened its scope to include methane and nitrous oxide emissions from shipping, addressing a wider spectrum of greenhouse gases.?The most significant change arrives on January 1, 2025, when general cargo ships with a large tonnage (GT) ranging from 400 to 5,000 will fall under the purview of the amended MRV Regulation. These vessels play a crucial role in global trade, and their inclusion underscores the commitment to sustainability.?Offshore ships with a GT of 400 and above will also be subject to the MRV requirements. Whether they serve oil rigs, wind farms, or other offshore installations, their emissions data will contribute to a more comprehensive environmental picture.?Offshore ships with a GT of 5000 and above will also be subject to the ETS requirements in 2027.?

Timeline for implementation of EU MRV & EU ETS

Shipping Company Bonds

?For shipping companies, compliance with the amended MRV Regulation involves several key steps.

• They must prepare robust monitoring plans that outline how emissions data will be collected and reported. Templates are available to streamline this process.
• They must report Carbon Dioxide (CO?) emissions, methane (CH4), and nitrous oxide (N2O) data annually. Accuracy, reliability, and adherence to regulatory standards are paramount.
• Accredited independent verifiers will verify the reported emissions to ensure credibility and trust.
• Companies must also submit aggregated emissions data at the company level, which fosters accountability.

Sanctions for Non-Compliance:

Shipping companies who do not surrender their allowances may be subject to an excess emissions penalty of EUR 100 (adjusted for inflation) per ton of CO2 equivalent, in addition to the EUAs they must surrender. In 2027, offshore vessels will also be included in the EU ETS and will be subject to the same penalties. If a shipping company fails to comply with its obligations for two or more consecutive reporting periods, the competent authority of the EU Member State of the port may issue an expulsion order. Additionally, for offshore and general cargo ships below 5000 GT that remain under the scope of MRV, EU Member States will ensure that all vessels under their responsibility comply with EU MRV obligations.?

How can Verifavia assist you??

• Verifavia has extensive experience in the field of emissions verification and compliance. We have worked with numerous shipping companies and regulatory bodies, which allows us to offer expert guidance tailored to the specific needs of each client.?
• We follow a well-established and rigorous verification process to assess EUAs and manage allowances with Per-Voyage Verified. Our process ensures that the data submitted is complete, reliable, accurate, and in conformance with the regulations.?
• We offer continuous and periodic verification services, allowing shipping companies to regularly monitor and assess their GHG intensity compliance. This proactive approach helps companies stay on track and make necessary adjustments to maintain compliance.?

To summarize, Verifavia's expertise, robust verification process, and ongoing support enable shipping companies to navigate the complex landscape of MRV and ETS regulations.?

Contact us at?[email protected] for more information.

Drafted by- Anmol Grace