NL 284/23 | MRV Regulation Changes: Time for Action!

Nov 02, 2023

Refers to: Owners and Operators of vessels greater than 5000GT, general cargo ships between 400 and 5000 gross tonnage and offshore ships of 400 gross tonnage and above, engaged in commercial voyages in/out or between EU ports

Action Date: January 1st, 2024

 

In 2015, the European Union made significant progress in reducing greenhouse gas emissions from the maritime transport industry by implementing Regulation (EU) No 2015/757, known as the MRV Regulation. This regulation set out guidelines for large shipping companies to provide annual reports on carbon dioxide (CO2) emissions and relevant details. Independent verifiers accredited by the EU would then confirm the accuracy of these reports for ships exceeding 5000 gross tonnage (GT) calling at ports within the European Economic Area (EEA).

 

In 2023, the MRV Regulation underwent amendments as part of a broader strategy to curtail emissions from the maritime sector. Its objective is to encompass maritime transport operations within the EU Emissions Trading System. It also stipulates the monitoring, reporting and verification of emissions of additional greenhouse gases and emissions from additional ship types.

 

Until January 1, 2024, the MRV Regulation exclusively monitored CO2 emissions from sizable ships both underway and at berth, considering various related factors like energy efficiency, distance travelled, time at sea, and cargo carried.

 

CO2 emissions stand as the primary element of greenhouse gas emissions from maritime transport, although methane (CH4) and nitrous oxide (N2O) also contribute significantly. After January 1, 2024, the MRV Regulation’s scope broadened to encompass methane and nitrous oxide emissions from shipping.

 

Furthermore, starting January 1, 2025, general cargo ships between 400 and 5000 gross tonnage and offshore ships of 400 gross tonnage and above were included within the amended MRV Regulation's jurisdiction.

 

Shipping company obligations after 1 January 2024 under the amended MRV Regulation

 

Under the updated MRV Regulation, shipping companies are now obliged to modify their ships' monitoring plans in compliance with the amended regulation starting January 1, 2024. These revised plans need evaluation by independent accredited verifiers.

 

If deemed compliant, companies must submit these revised plans via THETIS-MRV by April 1, 2024, for approval by the relevant administering authority.

 

For ships visiting an EEA port for the first time after January 1, 2024, the company should submit their monitoring plans within three months of the initial call.

 

From January 1, 2024, shipping companies must monitor and report methane (CH4) and nitrous oxide (N2O) emissions, in addition to CO2 emissions.

 

Each shipping company will be associated with the administering authority of a Member State. The European Commission will publish a list assigning each company to an administering authority of a Member State, following guidelines from the EU ETS Directive, by February 1, 2024, and every two years thereafter.

 

Beginning in 2025, by March 31 of each year, companies must submit an emissions report for each ship they oversee, covering the previous year's reporting period. These reports must be verified and submitted through THETIS-MRV to the relevant administering authority, the ship's flag State authorities (if it's an EEA country), and the European Commission.

 

From 2025, by March 31 of each year, for ships falling under the ETS Directive's scope, shipping companies must additionally submit an emissions report at the company level, consolidating data verified by a verifier in accordance with Regulation (EU) 2015/757. This report should contain aggregated emissions data for all ships under the company's responsibility, categorized by individual greenhouse gas and expressed in tonnes of CO2 equivalent.

 

Obtain the revised MRV Regulation:

 

REGULATION (EU) 2023/957 enacted by the European Parliament and the Council on May 10, 2023, amending Regulation (EU) 2015/757.

 


For any further information you are free to contact PHRS Head Office or any other PHRS office near you.

 

November 2nd 2023 - PHRS Head Office