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Climate Action
Proposal for amending Regulation (EU) 2015/757 on the monitoring, reporting and verification of CO2
emissions from maritime transport
ENVI Committee, Brussels, 6/11/2019
European CommissionDG Climate Action
1
Climate Action
Outline
• Overall context: at global & EU level
• Regulation (EU) 2015/757
• Why this proposal?
• Impact Assessment: policy options
• Key insights of this proposal
• EU MRV – 1st monitoring cycle
2
Climate Action
Context: GHG emissions from shipping at global level
• transport 80% of all global trade
• 2-3% of total global GHG emissions
• Expected to increase by 2050 (+50% to +250%)
• EU ship owners control 1/3 of the world’s merchant fleet
3Source: MarineTraffic.com
Climate Action
Context: GHG emissions from shipping at EU level
• Maritime, a key sector at EU level
Represents 13% of the EU GHG transport emissions in 2015 and is expected to increase by 2050
Climate Action
Context: A need for urgent concrete actions
• Paris Agreement
• Efforts at international level should be encouraged and regularly reviewed by the Commission
5
IMO or the Union to start from 2023, including preparatory work and stakeholder consultations
Climate Action
Context: Developments at the international level
• 2011 – IMO energy efficiencylegislations (EEDI*, SEEMP**)
• 2016 – IMO Data Collection System for fuel oil consumption
• April 2018 – IMO initial GHG Strategy, key objectives:
• Reduce GHG emissions by at least 50% by 2050 compared to 2008, pursuing efforts to phase out asap this century.
• Reduce carbon intensity of ships by a least 40% by 2030 compared to 2008 levels.
6* Energy Efficiency Design Index** Ship Energy Efficiency Management Plan
Climate Action
Context: Developments at the EU level
7
System for monitoring,
reporting and verification
(MRV) of emissions
Definition of reduction
targets for the maritime
transport sector
Application of actual
reduction measures
1 2 3
• 2013 – EC communication on integrating shipping emissions
• 2015 – Regulation (EU) 2015/757 & implementing acts
… preferably at global level, but action urgently needed
Climate Action
8
Regulation (EU) 2015/757: Key Objectives
Collect robust and verified CO2 emissions data
Bring transparency to stimulate the up-take of energy efficiency technologies and behaviour.
Inform future policy-making decision
Climate Action
Why this proposal?
9
Reg (EU) 2015/757
Implementingacts
PreparationEU MRV system
IMO system
2015 2016 2017 2018 2019 2020
MARPOL amendments
IMO guidelines
Preparation
• Co-existence of two systems:
• Art 22.3 of Regulation (EU) 2015/757
« In the event that an international agreement on a global monitoring, reporting and verification system for greenhouse gas emissions or on global measures to reduce greenhouse gas emissions from maritime transport is reached, the Commission shall review this Regulation and shall, if appropriate, propose amendments to this Regulation in order to ensure alignment with that international agreement.”
Climate Action
10
Why this proposal?
Key objectives:
• Facilitate harmonious implementation
• Reduce administrative burden for ships
• Preserve the objectives of the EU MRV Regulation:
Collect robust and verified CO2 emissions data
Bring transparency to stimulate the up-take of energy efficiency technologies and behaviours.
Inform future policy-making decision
Climate Action
11
Impact Assessment: Policy options
Three options:
Option 1: Baseline scenario
•Keep EU Regulation as it is
Option 2: Streamlining
•Different alignment options, including:scope, definitions, monitoring parameters, plans and templates, verification and transparency
Option 3: high convergence
•Harmonisation of all technical aspects
(scope, verification, transparency, monitoring parameters, definitions, etc.)
Discarded candidates: Governance, CO2 reporting
Climate Action
Key insights of this proposal
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• Definitions of “company” and “reporting period”
• Obligations in case of “change of companies”
• Voluntary reporting of “cargo carried”
• Use of the same parameter to calculate distance travelled and time at sea
• Streamlining of the monitoring plans
What we propose to change:
What we propose no to change:
• Scope, Governance, Transparency, Verification, CO2
monitoring
Climate Action
14
• A first bottom-up picture of all EEA-related shipping emissions• Over 11.600 Emission Reports, mostly from non EEA flagged
ships
• Representing around ~ 139 million tonnes of CO2 emissions
State-of-Play: 1st compliance cycle under the EU MRV (2018 CO2 emissions)
At berth
Intra EEA
Extra EEA Outgoing
Extra EEAIncoming
DM(8
Slide 14
DM(8 pleae check figuresDITTEL Maja-Alexandra (CLIMA); 24/10/2019
Climate Action
15
State-of-Play: 1st compliance cycle under the EU MRV (2018 CO2 emissions)
• The EU MRV system is delivering
• Transparency is ensured
• High political attention to address emissions from the sector
Climate Action
Thank you for your attention!
Please visit our websites:
http://ec.europa.eu/clima/policies/transport/shipping/index_en.htm
https://ec.europa.eu/clima/consultations/articles/0032_en
16
Climate Action
Timeline for implementation of MRV
17
2015
COP Paris
2016 2017 2018 2019
Submission of emission reports
Preparation of technical rules
MEPC 68 MEPC 69
MEPC 70
MEPC 71
MEPC 72
MEPC 73
MEPC 74
Climate Action
Regulation (EU) 2015/757: workflow
Assesses MP
Drafts MP
Monitors CO2
emissionsProduces
ER
Submits Verified ER
VerifiesER
DraftsVR
IssuesDoC
ConsultsVerified ER
& DoC
Consult public information
(Art. 21)
COMPANY
VERIFIERCOMMISSION
MS / FLAGPUBLIC
20192017 2018
1st Report. Period
30/04
30/06
18
Climate Action
19
Key insights of the proposed revision
Scope EU MRV IMO DCS Proposal
Size of ships No changes
Voyages Ships engaged in International & Domestic voyages
Ships engaged in International voyages only
No changes
Type of ships Transport of passengers or cargo only
All types No changes
Climate Action
20
Monitoring EU MRV IMO DCS Proposal
Parameters Fuel & CO2 reporting:• Outgoing voyages• Ingoing voyages• Intro EU voyages• Port Emissions
Fuel reporting only
No changes
Cargo carried and transport work
Deadweight tonnage
Cargo carried becomesvoluntary
Time spent at sea
Hours underway Alignment
Distance travelled
Distance (IMO def)
Alignment
Plans & templates
EU templatesand plans
IMO templates Streamlining
Key insights of the proposed revision
Climate Action
21
Definition EU MRV IMO DCS Proposal
Company Not the same legal definition Alignment
Reporting period
Voyagesaccounted in the first calendar year
Voyages accounted under the concernedcalendar year
Alignment
Change of companies
New company responsible for the entire reporting period
New company only responsible as from the day of the change
Alignment
Key insights of the proposed revision
Climate Action
22
Governance EU MRV IMO DCS Proposal
Reporting Flag neutral – all ships calling at EEA ports report to the EC and authorities of flag States concerned
Ships report only to their flag State, and flag State to IMO No changes
Verification EU MRV IMO DCS Proposal
Verifiers Accredited third party verifiers
Flag Administrationsor duly authorized organisations
No changesVerificationrules
ISO standards & EU rules
IMO guidelines & national rules
Compliance Document of Compliance
Statement of Compliance
Key insights of the proposed revision
Climate Action
23
Transparency EU MRV IMO DCS Proposal
Publication Information of CO2 emissions and other relevant information (art 21) per ship
Anonymised per-ship data in an IMO database only accessible to Parties
No changes
Reporting Annual report to be prepared by the Commission
Annual report tothe Maritime Environment Protection Committee
No changes
Key insights of the proposed revision
Climate Action
Timeline: Co-Decision Process
• Council is advanced: COREPER mandate since 25/10/2019
• Provisional EP timetable: vote in June 2020
Can the file be advanced faster?