- According to Lloyd’s Register, the European Union’s Monitoring, Reporting and Verification Regulation (EU MRV) was revised in 2023 to incorporate shipping into the EU Emissions Trading System (EU ETS).
- This revised scope includes offshore vessels of 400 gross tonnage (GT) or above, as well as general cargo ships between 400 GT and 5,000 GT.
- From January 1, 2025, these ships are required to meet MRV obligations. As a result, monitoring plans for applicable vessels must be developed and verified by December 31, 2024.
Scope of the MRV Regulation
The EU MRV regulation mandates that greenhouse gas emissions (including CO₂, CH₄, and N₂O) for voyages to and from European Economic Area (EEA) states (EU, Norway, and Iceland), as well as within EEA ports, must be monitored, reported annually, and verified by an accredited authority.
The regulation provides distinct classifications for vessels under MRV obligations:
General Cargo Ships
Under Regulation (EU) 2016/1928, a general cargo ship is described as a multi-deck or single-deck vessel designed mainly for transporting general cargo. This classification excludes specialized dry cargo ships, such as livestock carriers, heavy load carriers, and barge carriers.
Offshore Ships
Offshore ships are defined by a delegated act from the European Commission, which classifies various types of vessels engaged in offshore services or at offshore installations. Excluding icebreakers, these include vessels such as anchor-handling tug supply ships, drilling ships, floating production storage and offloading (FPSO) units, wind turbine installation vessels, cable layers, and research survey vessels. Statutory certification or relevant documentation, like class notations, determine whether a vessel qualifies as an offshore ship under MRV regulations.
Future Inclusion in EU ETS for Larger Offshore Ships
Starting January 1, 2027, offshore vessels of 5,000 GT and above will be subject to EU ETS requirements. Companies will need to surrender adequate EU emission allowances (EUAs) by September 20, 2028, to cover emissions from 2027.
Compliance Steps for Shipowners and Managers
To align with MRV requirements, designated shipowners or managers must take a series of actions for vessels now in scope:
Monitoring Plan Development and Verification
Shipowners must develop a monitoring plan, verified by an accredited verifier, by December 31, 2024. This plan should include protocols for tracking CO₂, CH₄, and N₂O emissions.
Submission of Monitoring Plan
Following the initial port call within the EEA, the verified monitoring plan must be submitted to the Administering Authority within three months. For instance, if a vessel’s first EEA visit is on February 15, 2025, the plan should be submitted by May 15, 2025.
Emissions Data Collection
Emissions data collection in accordance with the monitoring plan should begin on January 1, 2025.
Verification of Collected Data
By March 30, 2026, the emissions data gathered during 2025 must be verified by the appointed verifier.
Opening of a Marine Operator Holding Account (MOHA)
For vessels under EU ETS, it is recommended to open a Marine Operator Holding Account (MOHA) promptly. The MOHA is essential for reporting company-level emissions and surrendering the necessary EUAs, ensuring ETS compliance.
This overview provides the necessary actions for compliance with the revised MRV regulation, helping shipping companies prepare for the transition and maintain regulatory adherence.
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Source: Lloyd’s Register
