In the coming months, the European Parliament is set to have a debate on the Commission’s proposal on establishing an EU system for monitoring, reporting and verifying (MRV) CO2 emissions from large ships calling at EU ports.

The proposal was published in June and requires owners of large ships (above 5000 GT) to monitor and report the verified amount of CO2 emitted by their ships on voyages to, from and between EU ports. Owners are also required to provide certain other information, such as data to determine the ships’ energy efficiency. Ships will have to carry on board a document of compliance issued by an independent verifier and would be subject to inspection by EU Flag State and Port State authorities.

In his draft report, Rapporteur Theodoros Skylakakis (photo) of the European Parliament’s ENVI Committee suggests focusing measurement on fuel consumption and distance sailed. This is much in line with the ECSA position, which among others also advocates that mandatory MRV requirements should be agreed upon at IMO level and that the reporting of commercially sensitive cargo information per ship is premature at this stage. Publication of such data would in any case be unwarranted.  The Rapporteur however also modified the Commission’s proposal so as to expand the scope of application of the proposed Regulation by including (i) Nitrogen Oxyde (NOx) emissions and (ii) all ships above 400 GT (instead of 5000 GT as proposed by the Commission).

The TRAN and ITRE Committees are also drafting an opinion on the matter. The Rapporteur for TRAN, Green MEP Michael Cramer, has put forward far-reaching proposals, introducing the monitoring of many other climate- and health relevant pollutants as well as an emission-related charging incentive system. It is expected that other MEPs may go for similar amendments, which will make upcoming discussions very difficult. 

The vote in the ENVI committee on the final Report has been advanced from mid-February to 30 January 2014. The EP Plenary sitting vote is tentatively set on 14 April 2014. In theory, this would allow the European Parliament, the Council and the Commission to achieve and adopt a potential compromise agreement through informal trilogue. Political agreement however remains uncertain before Parliament goes into political recess and hitherto work in the Council has been sluggish. Much will depend on the intentions of the upcoming Greek Presidency, which for now remain unknown.

“It is of vital importance that the EU initiative facilitates an international solution”, said ECSA Secretary General Patrick Verhoeven, “That is why we urge Parliament and Council to keep the regulation as simple and focused as possible. Adding other emissions and including a market-based measure would certainly stop progress in IMO.”

The International Maritime Organisation is indeed preparing itself for a debate on the issue. Various submissions have been tabled for discussion at the 66th meeting of the Marine Environment Protection Committee (MEPC) between March 31 – April 4, 2014. Among them, a proposal from ICS on establishing a mandatory global system for monitoring and reporting fuel consumption which is largely in line with ECSA’s view on the matter.

Background of the Commission’s MRV proposal

In March 2011, the European Commission published its White Paper on the Future of Transport. In it, the Commission suggested that CO2 emissions from shipping in the European Union should be reduced by 40% (if possible 50%) of 2005 levels by 2050.

In June 2013, the European Commission published a communication, accompanying the proposal for an MRV Regulation, which sets out a strategy for progressively integrating maritime emissions into the EU’s policy for reducing its domestic greenhouse gas emissions.

The Commission’s strategy is intended to be an integral component for a global MRV system. It consists of three consecutive steps:

• Monitoring, reporting and verification of CO2 emissions from large ships using EU ports;

• Greenhouse gas reduction targets for the maritime transport sector;

• Further measures, including Market Based Measures (MBMs), in the medium to long term.