The EU Monitoring, Reporting & Verification (MRV)
As a first step towards cutting greenhouse gas emissions from maritime transport, the EU requires operators of ships exceeding 5,000 GT to monitor and report their carbon emissions and transport work on all voyages to, from and between EU ports.
Emissions from the global shipping industry amount to around 1 billion tonnes a year, representing 3% of the world's total greenhouse gas (GHG) emissions and 4% of the EU's emissions. Without action, these emissions are expected to more than double by 2050.
In June 2013, the European Commission proposed a strategy for progressively integrating maritime emissions into the EU's policy for reducing its domestic GHG emissions. After a two-year legislative process involving all EU institutions, this strategy was adopted by the European Parliament in April 2015. The Regulation 2015/757 ('Shipping MRV Regulation') came into force on 1 July 2015.
The strategy consists of three consecutive steps:
- Monitoring, reporting and verification of carbon emissions from ships
- GHG reduction targets for the maritime transport sector
- Further measures, including Market-Based Measures (MBM)
What is the purpose of the Regulation?
The EU Shipping MRV system is designed to contribute to building an international system. First steps in this direction have already been taken at the IMO with active support from the EU and partner countries. By yielding further insights into the sector's potential to reduce emissions, the EU Shipping MRV system will also provide new opportunities to agree on efficiency standards for existing ships.
The MRV system is expected to cut CO2 emissions from the journeys covered by up to 2%, compared with a 'business as usual' situation, according to the Commission's impact assessment. The system would also reduce net costs to owners by up to €1.2 billion per year in 2030.
In addition, it will provide useful insights into the performance of individual ships, their associated operational costs and potential resale value. This will benefit ship owners, who will be better equipped to take decisions on major investments and to obtain the corresponding finance.
> Click here for more information on the EU's strategy
Which ships are concerned?
All ships exceeding 5,000 GT regardless of their flag, port of registry or home port are concerned, except warships, naval auxiliaries, fish-catching or fish-processing ships, wooden ships of a primitive build, ships not propelled by mechanical means, and government ships used for non-commercial purposes.
> Click here for more information on the scope of the regulation
Which data shall be reported?
For each ship exceeding 5,000 GT, fuel consumption and carbon emissions on all voyages to, from and between EU ports while the ship is at sea as well as at berth must be reported.
Other relevant information to be reported includes distance travelled, time spent at sea, details of the cargo carried, transport work and average energy efficiency expressed in fuel consumption or carbon emissions per distance or per transport work.
Data shall be reported on an annual as well as per-voyage basis, except if all of the ship's voyages start or end in ports located in the EU and if the ship performs more than 300 voyages in a reporting period according to its schedule.
> Click here for more information on what must be reported
Which fuel consumption methodologies are acceptable?
There are four acceptable fuel consumption monitoring methodologies:
- Bunker Fuel Delivery Note (BDN) and periodic stock-takes of fuel tanks
- Bunker fuel tank monitoring on board
- Flow meters for applicable combustion processes
- Direct emissions measurements
> Click here for more information on the methodologies
What is the next step?
All ships exceeding 5,000 GT calling at EU ports will have to submit a monitoring plan to a verifier for approval indicating the methodologies chosen to monitor and report emissions and other relevant information for each of their ships above 5,000 GT.
> See the MRV Process
> See the Legislative Timeline
> For more information, read our FAQ