Emissions reporting

ABS releases guide for shipping firms to annually comply with revised EU ETS directive

Brief provides a timeline of steps necessary to annually comply with EU requirements on emissions reporting and the surrender of emissions allowances, amongst others.

Published

11 months ago

October 2, 2023

Admin

Classification society ABS on Saturday (30 September) released a regulatory news brief on the revision of EU ETS directive which entered into force on 5 June 2023, for the inclusion of maritime transport activities in the EU Emissions Trading System.

The brief provides a timeline of steps necessary to annually comply with EU requirements on emissions reporting and the surrender of emissions allowances:

INTRODUCTION

The revision of the EU ETS Directive entered into force on 5 June 2023.

Implementation for the maritime industry will begin on:

1 January 2024, for cargo and passenger ships of 5000 GT and above; and
1 January 2027, for offshore ships of 5000 GT and above.

To facilitate compliance with the new directive, this Regulatory News is intended to provide operators and shipping companies with the necessary guidance.

AMENDMENTS TO REGULATION (EU) 2015/757 – EU MRV

The extension of EU ETS Directive to maritime transport requires additional reporting requirements. This was facilitated by Regulation (EU) 2023/957, amending Regulation (EU) 2015/757 which was published in the European Journal on 10 May 2023. The ABS Regulatory News 10/2023 explains the amendments to the EU MRV Regulation.

MONITORING

By 1 October 2023, the European Commission (EC) shall adopt delegated acts for the inclusion of
CH4 and N2O emissions and the greenhouse gas (GHG) emissions from offshore ships.
Additional delegated acts shall be adopted for the monitoring and reporting of the aggregated
emissions data at company level and the submission to the administering authority.
By 31 December 2023 or the soonest possible before 1 April 2024, shipping companies should
submit to ABS through the THETIS-MRV platform the updated monitoring plans (MPs) according to the EC delegated and implementing acts for each of their ships.
By 1 April 2024, shipping companies shall for each of their ships submit to their responsible
administering authority an MP that has been assessed by the verifier.
By 6 June 2025, the responsible administering authority shall approve the MP based on the assessment of the verifier.

For applicable ships which have not previously been subject to the requirements of Regulation (EU) n2015/757 prior to 1 January 2024, the shipping company will be required to submit an MP to their administering authority within three months of the ship’s first call in a port of an EU member State. The administering authority shall approve it within four months.

REPORTING

From 1 January 2024, shipping companies shall monitor and report emissions for cargo and passenger ships of 5000 GT and above in accordance with the revised MP.
From 1 January 2025, companies shall monitor and report emissions for the following additional vessel types:

Offshore ships of 5000 GT and above
Offshore ships and general cargo ships below 5000 GT but not below 400 GT.

From 31 March 2025 and each year after, companies shall, for each ship under their responsibility, submit to their administering authority, flag states concerned and the European Commission, an emissions report for the entire monitoring period of the previous year which has been verified as satisfactory by their verifier. For the monitoring period of 2023, the deadline for submission of the emissions report remains 30 April 2024.
From 31 March 2025 and each year after, shipping companies shall submit to their administering authority a verified emissions report at company level (aggregated emissions data under ETS).

Shipping companies must continue reporting their greenhouse gas emissions through the existing THETISMRV platform.

The administering authority may request companies to submit their verified emissions reports and the aggregated emissions data at company level prior to 31st of March, but not earlier than 28th of February of each year.

EU ETS DIRECTIVE APPLICATION

The EU Directive 2023/959 (amending Directive 2003/87/EC) will apply:

▪ From 1 January 2024 to cargo and passenger ships of 5000 GT and above.

▪ From 1 January 2027 to offshore ships of 5000 GT and above

CONTAINER TRANSHIPMENT PORTS

By 31 December 2023, the European Commission shall establish a list of container transhipment ports by

means of implementing acts. Stops of containerships in neighboring container transhipment ports are not considered a port of call for the purpose of minimizing the risk of evasive behavior.

Note: The full version of ABS Regulatory News on the ‘Revision of the EU ETS Directive- Timeline for Compliance’ can be viewed here.

Photo credit: william william on Unsplash
Published: 2 October, 2023

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FuelEU

DNV updates Emissions Connect to help mitigate FuelEU Maritime challenges and risks

New update include users being able to gain an overview of the GHG intensity of vessels in a fleet, the cumulative compliance balance and penalty cost per vessel, where applicable.

Published

4 days ago

September 6, 2024

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DNV updates Emissions Connect to help mitigate FuelEU Maritime challenges and risks

Classification society DNV on Thursday (5 September) has unveiled an upgrade to its emissions data verification and data management platform, Emissions Connect, which will enable the maritime sector to handle the commercial challenges and risks that come with the implementation of FuelEU Maritime.

The update comes at a crucial time as the industry is grappling with the requirements that take effect from 1 January 2025.

Emissions Connect was first launched in 2023 to support the industry with the operational impact of multiple regulatory requirements and decarbonization trajectories. Specifically it helps the industry manage and control Carbon Intensity Indicator (CII) performance, manage the commercial obligations arising from the European Union’s (EU’s) Emissions Trading System (ETS) and now also the implicatons of FuelEU Maritime.

Pål Lande, Product Line Director, DNV Maritime, said: “The introduction of new regulation to drive decarbonization is creating a complex environment for organizations across the shipping sector. To assist companies in dealing with this change, we are pleased to be offering a solution that will help them manage the commercial impact of these new rules and collaborate across the supply chain. Accurate and verified data is crucial to instil trust and ensure effective collaboration within this complex environment.”

FuelEU Maritime sets limits on the greenhouse gas (GHG) intensity of fuels used by ships calling at EU ports and progressively reduces these levels towards 2050.

The regulation covers well-to-wake emissions from the entire fuel life cycle and requires ship managers to submit a monitoring plan, report emissions data annually and have their compliance balance verified. GHG intensity which is too high can lead to a negative balance, which, if not compensated in a pool with other ships, will trigger a penalty that the shipping company must pay to the national authorities.

To manage these challenges, the new update allows users to:

Gain an overview of the GHG intensity of vessels in a fleet, the cumulative compliance balance and penalty cost per vessel, where applicable
Evaluate different vessel pool set-ups by creating different fleets to explore the most suitable options for FuelEU Maritime management
Track an individual ship’s performance by viewing basic vessel data, information on the GHG intensity of energy within the scope of FuelEU Maritime, and the compliance balance and corresponding penalty cost, if applicable
Create verified emissions statements on voyage and custom period level

Built on the Veracity Data Workbench that supports customers with a strong emissions data management solution, Emissions Connect offers a high-quality emissions data baseline that is digitally verified.

High-quality emissions data provided by the shipowner is verified by DNV and shared with customers for self-service in settlement of transactions or other purposes such as reporting, exporting and secure sharing with partners and third parties, including banks and insurance companies adhering to the Poseidon Principles.

Note: Read more about Emissions connect here.

Photo credit: DNV
Published: 6 September, 2024

EU ETS

OceanOpt and Veracity by DNV partner on maritime emissions management

Vessel emissions verified by DNV’s Emissions Connect can now be transferred into OceanOpt’s EU ETS portal, streamlining allocation and reconciliation of EU Allowances.

Published

1 week ago

September 3, 2024

Admin

Emissions management solutions provider OceanOpt recently announced a strategic partnership with Veracity by DNV, the maritime emissions cloud from classification society DNV.

The collaboration marked a step forward in addressing the complexities of the European Union Emissions Trading System (EU ETS) for shipping companies.

Through an API-backed data flow, vessel emissions verified by DNV’s Emissions Connect can be transferred into OceanOpt’s EU ETS portal, streamlining the allocation and reconciliation of EU Allowances (EUAs).

Anil Jacob, Managing Director of OceanOpt, said: “By connecting OceanOpt to the Veracity cloud we also integrate with DNV’s Emissions Connect, where customers can generate voyage statements for EU ETS.”

“With this at hand, our customers can meet the regulatory requirements in time, as well as comply with various charter party clauses. Our well-defined approach frees our customers from the burdens of data management and empowers them to focus on strategic growth.”

“Further on, OceanOpt’s data management service provides actionable insights for our clients to be able to significantly reduce carbon tax costs while ensuring regulatory compliance.”

Helge Bartels, COO, Bernhard Schulte, said: “OceanOpt provides the Berhard Schulte fleet with a customer-specific service package covering all IMO DCS and EU MRV reporting requirements.”

“When they now partner with Veracity and integrate with DNV’s Emissions Connect, we gain seamless access to verified emissions data from DNV inside the OceanOpt solution.”

“This provides us with a trusted baseline for our emissions management, aiming at reducing fuel consumption, improvingd CII-ratings, having full transparency and perfect argumentation towards owners, charterers, authorities, and other relevant stakeholders.”

“Not to the least, the tools for CII, EU ETS & Fuel EU help to identify necessary trade changes and related improvements.”

Mikkel Skou, Executive Director, Veracity by DNV, said: “We are pleased to welcome OceanOpt to Veracity by DNV’s network of integrated solution partners.”

“Their efforts to deliver timely and good quality data management for the Bernhard Schulte fleet is especially noteworthy, and we look forward to working with OceanOpt in helping our common customers obtain, manage and maximize the use of verified emissions data.”

Photo credit: Venti Views on Unsplash
Published: 3 September, 2024

Decarbonisation

INTERTANKO and Veracity by DNV partner on emissions data sharing

Partnership will enable DNV emissions verification customers to seamlessly share their data with INTERTANKO, further supporting the tanker industry in its decarbonization efforts.

Published

3 weeks ago

August 20, 2024

Admin

INTERTANKO and Veracity by DNV partner on emissions data sharing

Veracity by DNV and INTERTANKO on Monday (19 August) announced their partnership, enabling DNV emissions verification customers to seamlessly share their data with INTERTANKO, further supporting the tanker industry in its decarbonization efforts.

The partnership between Veracity by DNV and INTERTANKO represents an advancement in the use of verified emissions data by making it easier for tanker operators to share emissions data directly with external stakeholders, reducing their administrative workload.

2024 is the first year where ships trading in the European Union are subject to its Emissions Trading Scheme (ETS).

Verified emissions data are increasingly important for EU ETS commercial settlement, Carbon Intensity Indicator (CII) implementation, and operational efficiency requiring real-time verification of emissions data. Integration with INTERTANKO's benchmarking tool allows members using DNV as their verifier, to share the verified data in one secure and automatic data stream.

Mikkel Skou, Executive Director of Veracity by DNV, said: "Verified emissions data is becoming increasingly crucial for commercial settlements.”

“Now, we’re delighted to see that industry benchmarks and models like INTERTANKO’s can benefit from increased accuracy and trust from verified emissions data.”

“With our Veracity integrated partners, like INTERTANKO, we have prebuilt plug-and-play secure data integration ready for our customers to use. No IT project is needed for customers to automate their operation.”

Catrine Vestereng, SVP & Global Segment Director at DNV, said: "DNV is striving to support our tanker customers in their daily challenges, and by working closely with INTERTANKO within all technical, regulatory, and safety issues.”

“One of the greatest challenges in the tanker industry these days is seamlessly being able to share emission data with external stakeholders, and we are proud to be able to set up this connection with INTERTANKO to reduce the administrative burden for our tanker customers."

Tim Wilkins, Deputy Managing Director at INTERTANKO, said: "The newly formed partnership enables DNV emissions verification customers to share their verified data with INTERTANKO easily and supports the development of a platform for our members to simplify reporting and eliminate the need for multiple reports to several different entities.”

“The collaboration enhances INTERTANKO’s data analytics tools allowing Members to compare their fleet with the industry or internally across various parameters such as CII, annual efficiency ratio and fuel consumption.”

Photo credit: DNV
Published: 20 August, 2024