Since its inception in 2018, the EU-MRV (Monitoring, Reporting and Verification) regulation has been at the forefront of monitoring carbon dioxide (CO2) emissions from ships engaged in EU-related voyages. Applied to vessels above 5,000 gross tons arriving at or departing from ports under the jurisdiction of an EU member state, this regulation establishes stringent rules for developing Monitoring Plans and submitting Emission Reports to accredited verifiers.
EU-MRV Framework
The obligations imposed by the EU-MRV fall on shipping companies, including ship owners, ship managers, or individuals responsible for operations. These entities are mandated to submit developed Monitoring Plans to accredited verifiers, who assess compliance under the regulation. The collected information is then used to prepare Emission Reports, ensuring a transparent and accountable system for monitoring emissions from the maritime industry.
EU-ETS integration imposes a cap on emissions
In response to the ambitious EU target of reducing greenhouse gas (GHG) emissions by at least 55% below 1990 levels by 2030 and achieving net-zero GHG emissions by 2050, the EU introduced the “Fit for 55” climate change policy package in July 2021. Central to this package was the proposal to extend the EU Emissions Trading System (EU-ETS) to the shipping sector. Subsequent amendments to the EU Directive for EU-ETS were adopted, with implementation effective from 1 January 2024.
This extension of the EU-ETS to the shipping sector represents a significant step in aligning maritime emissions regulation with broader environmental objectives. This market-based approach imposes a cap on emissions, gradually reducing the allowable amount over time. Shipping companies will now be required to participate in emissions trading, buying and surrendering allowances based on a phased-out schedule, ultimately contributing to reducing GHG emissions in the maritime sector.
The recent revisions to the EU-MRV regulation, coupled with the expansion of the EU-ETS to include the shipping sector, underscore the EU’s commitment to tackling climate change and achieving stringent emissions reduction targets.
