Business

DNV: How does EU ETS impact EU MRV reporting?

DNV expert Sven Dudszus shared insights on how the implementation of EU ETS will impact MRV reporting going forward, which will be revised to cover GHG emissions, ship types and sizes.

Published

4 months ago

June 16, 2023

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RESIZED Venti Views on Unsplash ship vessel

Emissions for the EU Emission Trading System (EU ETS) will be reported and verified through the EU MRV system, which will be revised to cover GHG emissions, ship types and sizes. DNV expert Sven Dudszus shared insights on what these changes mean for the reporting process and compliance:

Can you give a brief overview of the current MRV (Monitoring, Reporting and Verification) reporting process and the challenges that still need to be addressed?

Currently, the EU MRV regulation applies to cargo and passenger ships above 5,000 GT operating in European Economic Area (EEA) waters. Since 2017, these vessels have been required to monitor and collect CO2 emissions data for EU-related voyages. The collected data is submitted as an Emission Report for verification to the European Commission by 30 April of the following year. One of the challenges faced by customers is ensuring the accuracy and quality of the data. At DNV, we have established digital reporting forms and automated data checks to address this challenge. This enables our customers to monitor their vessels’ data quality throughout the year and easily submit the Emission Report for verification. Our close collaboration with customers has made this process seamless for them.

How does the implementation of the EU Emission Trading System (ETS) impact MRV reporting going forward?

The implementation of EU ETS complements the existing EU MRV and UK MRV initiatives, forming a comprehensive decarbonization framework. Under the EU ETS, companies will be required to submit not only their vessels’ Emission Reports for verification but also a Company Emission Report summarizing their entire fleet’s performance. Additionally, managers will need to surrender greenhouse gas emission allowances to the administering authority. At DNV, we utilize the operational data received from our customers to create customized GHG reports to facilitate compliance with these new requirements.

Are there any key dates or numbers that are crucial in this change?

The deadline for the first Company EU MRV Emission Report submission to the Administering Authority is 31 March 2025. The deadline for surrendering allowances to the Administering Authority is 30 September 2025. 100% of GHG emissions will be considered for voyages or port stays within the EU. 50% of GHG emissions will be considered for voyages into or out of the EU. EU Allowances (EUAs) will be corresponding to 40% of the company emissions in 2024 and this percentage will gradually increase in subsequent years.

How can additional emissions impact compliance matters?

Including additional emissions would require companies to surrender more allowances to the Administering Authority. Failure to fulfil these requirements could result in liability for excess emissions with a penalty of 100 euros applicable per ton of CO2. Companies would still be obligated to surrender the required allowances. Non-compliance with the regulation for two or more consecutive periods may lead to denial of entry to the EU for all ships under the company’s responsibility.

What challenges do shipowners face and how can DNV support them in navigating these challenges?

Shipowners will face an expansion of the EU MRV scope which will include new greenhouse gases (N2O, CH4) starting in 2024. As of 2025, General Cargo and Offshore vessels above 400 GT will also be subject to the EU MRV Regulation. DNV’s digital solutions such as a plan generator, data quality checks, or system-to-system connection (API) have been developed to address these new regulatory requirements. Furthermore, we will continuously develop our digital GHG-related services and applications to assist our customers in initiating their decarbonization journey.

As the EU ETS changes approach, how important is preparation?

Preparation is crucial for companies to be ready to comply with the new regulations when they take effect. The first step is to register with an administering authority in the EU, as provided by the European Committee’s list. The second step is to submit an updated EU MRV Monitoring Plan to DNV once the revised regulations come into force. All applicable vessels must have a verified plan on board before the 2024 reporting period. To support our customers in meeting this deadline, we will release an update to our MRV Monitoring Plan Generator on our Fleet Portal. From 2024 onwards, we will develop various digital systems to aggregate fleet emissions and issue Company CO2 Emission Statements, which need to be submitted to administering authorities by 31 March.

About Sven Dudszus, Head of Environmental Technologies (GHG)

Sven Dudszus currently holds the position of Head of Environmental Technologies GHG at DNV in Hamburg, Germany. He manages an international team across different locations responsible for greenhouse gas-related services for the shipping industry such as EU MRV, UK MRV, IMO DCS, EU ETS, FuelEU, SEEMP III, CII and Fit for55.

Photo credit: Venti Views on Unsplash
Published: 16 June, 2023

Milestone

Singapore retains titles as Best Global Seaport and Best Seaport in Asia

Port of Singapore has been named the “Best Global Seaport” for the third consecutive year and the “Best Seaport in Asia” for the 35th time at the 2023 AFLAS Awards.

Published

1 day ago

September 29, 2023

Admin

Singapore retains titles as Best Global Seaport and Best Seaport in Asia

The Maritime and Port Authority of Singapore on Friday (29 September) said the Port of Singapore has been named the “Best Global Seaport” for the third consecutive year and the “Best Seaport in Asia” for the 35th time at the 2023 Asian Freight, Logistics and Supply Chain (AFLAS) Awards.

These accolades recognise the contributions by the Port of Singapore serving as a key node in the global supply chain, and Singapore’s leadership in driving maritime decarbonisation and transformation.

The annual AFLAS Awards is organised by freight and logistics publication, Asia Cargo News, to honour leading service providers in the supply chain community for demonstrating leadership as well as consistency in service quality, innovation, customer relationship management and reliability. Winners were determined by votes cast by readers of the publication.

Mr Chee Hong Tat, Acting Minister for Transport and Senior Minister of State for Finance, said: “Singapore is honoured to be named the Best Global Seaport and Best Seaport in Asia. These awards are the result of the shared effort and strong collaboration between the Government, industry, unions and workers. We will continue to grow our port as an efficient, sustainable, and trusted node in global supply chains.”

Mr Teo Eng Dih, Chief Executive of MPA, said: “These awards are testament to the partnership and collaboration between Maritime and Port Authority of Singapore (MPA) with industry and international partners, the research and enterprise community, as well as unions. MPA remains committed to fostering an environment that encourages enterprise, innovation, and talent development.”

“We will continue to work with our partners to enhance Singapore’s connectivity, advance digitalisation efforts, and accelerate the decarbonisation of international shipping in line with the 2023 IMO strategy on reduction of GHG emissions from ships.”

Photo credit: Maritime and Port Authority of Singapore
Published: 29 September, 2023

Employment

Melvin Lum appointed as KPI OceanConnect Global Accounts Commercial Director in Singapore

Lum will take on the position of Commercial Director from Thomas Lee who was recently promoted to Head of APAC in a management restructure within KPI OceanConnect.

Published

1 day ago

September 29, 2023

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Melvin Lum appointed as KPI OceanConnect Global Account Commercial Director in Singapore

Global marine energy solutions provider KPI OceanConnect on Thursday (28 September) announced the appointment of Melvin Lum as Commercial Director for its Global Accounts team in Singapore.

Lum will take on the position of Commercial Director from Thomas Lee who was recently promoted to Head of APAC in a management restructure within KPI OceanConnect.

The Global Accounts team is an expert unit within KPI OceanConnect, specialised in providing long-term, tailored fuel strategy solutions to a portfolio of Key Accounts on a global scale. Dedicated regional teams located in London, Houston and Singapore work seamlessly across the world and around the clock to support their clients.

Lum joined KPI OceanConnect in 2021 as Senior Key Account manager and has made a significant contribution to the development of the team and optimisation of the daily operations of the unit in Singapore. Lum has vast experience across the supply chain and previously worked with TotalEnergies, Glencore and Global Energy Group prior to joining KPI OceanConnect.

Henrik Zederkof, Head of Global Accounts at KPI OceanConnect, said: "It is always a pleasure to witness the growth of our team members, and Melvin's progression is no exception. I have full confidence in Melvin's expertise, ability to lead the unit and dedication to his team. I look forward to seeing the progress of Melvin and his team, which will undoubtedly bring significant value to our numerous partners and the wider organisation.”

"Melvin will assume a pivotal role within the Global Accounts management team, leveraging his extensive experience in supply chain management and profound insight into emerging technologies. In his new role, Melvin will further enhance our team's skill set, aligning them with our ongoing objectives of supporting our partners in their green transition and digitalisation endeavours."

Melvin Lum, Commercial Director of KPI OceanConnect Global Accounts in Singapore, said: "I am very appreciative of the support and confidence from our management team as I take on this exciting new role. I am enthusiastic to work with the team as we continue to deliver an exceptional experience to our partners and stakeholders with dedication, innovation and passion."

Photo credit: KPI OceanConnect
Published: 29 September, 2023

Biofuel

TotalEnergies Marine Fuels renews ISCC EU certification for bio bunker fuel

Firm’s operations teams in Singapore and Geneva successfully renewed its ISCC EU sustainability certification for the supply of biofuel bunkers, says Louise Tricoire, Vice President.

Published

1 day ago

September 29, 2023

Admin

TotalEnergies Marine Fuels renews ISCC EU certification for bio bunker fuel

Louise Tricoire, Vice President of TotalEnergies Marine Fuels recently said the firm’s operations teams in Singapore and Geneva successfully renewed its International Sustainability and Carbon Certification (ISCC) EU sustainability certification for the supply of biofuel bunkers.

“This means that TotalEnergies Marine Fuels can continue sourcing and supplying marine biofuels in accordance with EU renewable energy regulations ensuring the highest sustainability standards,” she said in a social media.

“It's the third year in a row that we have successfully renewed this certification, after a deep and comprehensive audit which showed zero non-conformity.”

She added marine biofuels have grown in demand among shipping companies that want to cut greenhouse gas emissions immediately.

“TotalEnergies Marine Fuels offers marine biofuels commercially in Singapore and we are starting in Europe. This certification enables us to accompany our customers in their decarbonisation journey with the best standard solutions available today.”

Photo credit: TotalEnergies Marine Fuels
Published: 29 September, 2023