Transport

Monitoring, reporting and verification of CO2 emissions from maritime transport

An effective first step to further reduce emissions from

international shipping

Yolanda Villar Ruberte Unit International carbon market, maritime and

aviation DG CLIMATE ACTION

EUROPEAN COMMISSION Naples Shipping week

26-27 June 2014

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Transport

Monitoring, reporting and verification of CO2 emissions from maritime transport

- The global shipping GHG emissions' challenge

- EU action addressing CO2 shipping emissions: the gradual approach strategy

- International action: latest developments at IMO

Transport

The need to act on maritime CO2 emissions: Estimated growth of CO2 emissions from international shipping (in million tons)

3 Data sources: 2nd IMO GHG study 2009 for emissions until 2007; MEPC 63/INF 2 for average scenario projections 2010-2050

Transport

The need to act on maritime CO2 emissions: Recent developments in the sector

Important emission (and fuel consumption) reduction potential identified

Increased fuel prices: price of heavy fuel oil today 8 times higher than 1990

Further increase of fuel prices expected

Improvements in fuel efficiency observed since 2009 when profit margins of the sector decreased

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The need to act on maritime CO2 emissions: Abatement technologies available

Abatement potential for shipping between 25-75% (cumulative potential)

Significant part even with negative costs ('low-

hanging fruits') due to high fuel costs

Uptake of cost-effective measures hampered by so-called "market barriers"

Regulatory action needed to overcome such market barriers

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The need to act on maritime CO2 emissions: All other sectors covered by EU measures

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European package on maritime GHG emissions

Communication on Integrating maritime transport

emissions in the EU's greenhouse gas reduction policies

Proposal for a Regulation on the monitoring, reporting and

verification of CO2 emissions from maritime transport

Impact Assessment

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Gradual EU approach proposed

1. Implementing a system for monitoring, reporting and verification (MRV) of emissions

• Robust MRV as foundation of any measure

• MRV provides reliable information on ship efficiency

• EU MRV proposal to contribute to international debate

2. Definition of reduction targets for the maritime transport sector

3. Long-term application of a market-based measure (MBM)

• Required to meet ambitious global climate goals

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Transport

European experiences on fuel cost savings through monitoring and reporting

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Several ship-owners and ship-operators have already

successfully implemented their own MRV systems. Using

electronic data collection tools, most existing information

on ship performance is gathered and checked by a 3rd

party. Thanks to these systems, some companies already

reduced their GHG emissions up to 25% compared to

2007. Furthermore, such tools have also contributed to

rethink general monitoring processes, saving time of

crews and operators.

For concrete examples, please visit: http://ec.europa.eu/clima/events/0064/index_en.htm

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Impact Assessment: Expected benefits of MRV

• Reduction of CO2 emissions by 2% compared to baseline (more than 50 Mt CO2 by 2030); assumption considered very conservative by some leading industrial stakeholders

• Net cost savings

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CO2 emissions = Emission factor X Fuel consumption

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MRV: Scope

• Flag-neutrality all ship's voyages related to the EU

• Exclusion of small emitters below 5000 GT and special ships (e.g. military, fishing)

• Focus on CO2 as predominant greenhouse gas emission from ships

• Covers also data ship's energy efficiency (expressed by different indicators similarly to IMO dicussions)

• Transparency as a key element of the MRV 11

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Entities involved

• Ship: as the source of emission is the compliance unit data are to be monitored and reported "per ship"basis

• Company: shipowner or other legal or physical person delegation of MRV obligations to ship manager, charterer, etc.; obligation to carry document of compliance on board

• Verifier: in charge of verification of monitoring plans and emission reports, issues document of compliance

• Commission (supported by EMSA): central authority in charge of receiving and publishing emission reports

• MS' authorities: in charge of inspections and enforcement, acting as FS or PS

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Leanness MRV approach using existing documents and tools

Bunker Delivery

Note

Monitoring Plan

Annual Emission Report

Central database

Tank Sounding

Flow Meters

Emission Measure-

mentVerification

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MRV Compliance cycle

Ship

EU central body

National competent authority

Verifier

Submit verified annual

emissions report

Provide information on compliance

Submits Monitoring plan

and Annual emission reports

Appropriate follow-up measures

Issues a DoC document of compliance

Climate Action

Legislative Procedure

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On-going co-decision procedure (EP & Council)

New EP to give follow up

EP's 1st reading position

April 2013

Trialogues Autumn 2014

Council working group technical discussions still on-going

Transport

International dimension of Commission MRV proposal

• EU MRV measure to be implemented from 2017

=> IMO could agree global MRV until then

• EU MRV as contribution to global MRV

discussions (EU submission to MEPC 66)

• Continued dialogue with third states &

stakeholders

• Adjustment of EU-MRV in the event of

agreement on global MRV

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International progress

• IMO discussions on GHG emissions since 1997

• EEDI and SEEMP – major first step

• IMO recognised that more measures needed to reduce emissions

• New discussions on further efficiency standards and data collection and reporting

• Phased approach

• Role of data collection and reporting

• Efficiency measures

• MBMs – still needed or not?

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EU submission to 66th session of IMO's Marine Environmental Protection Committee

• Data collection as first step of staged approach for further measures to increase ship efficiency as proposal by the US (MEPC 65/4/19) and supported by several IMO members (MEPC 65/4/30)

• Submission MEPC 66/4/9 addresses key elements for global data collection system for maritime transport

• Underlines EU's preference with global agreement of ship emissions

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66th session of IMO's MEPC: progress made

• WG on further efficiency measures and data collection was established. First exchange on main features for data collection system

Intersessional work to be continued within

correspondence group

• An "Ad Hoc" Expert WorkingGGroup on technology transfer also established main outputs and workplan agreed PreeerocessTimeframe (who & when)

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Steps ahead

• 2014 as a key year IMO likely to make progress on global data collection as a first step

• 2015 adoption and entry into force of the EU-wide MRV Regulation in the absence of a global MRV adopted by IMO

• Starting point for preparation and adoption of supporting technical legislation (scope to be defined during codecision process), including stakeholders and experts involvement during 2016;

• Accreditation of verifiers early 2017;

• Monitoring Plan to be submitted to a accredited verifier during the second half of 2017;

• Monitoring of shipping activities carried out after 01/01/2018 starts - 1st monitoring year

Transport

Thank you for your attention!

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