Marine fuels testing company VPS on Wednesday (25 September) shared a brief to guide offshore vessel owners on the upcoming EU requirements, including four essential questions every offshore shipowner should ask when preparing for the latest Monitoring, Reporting, and Verification (MRV) requirements: 

Executive Summary

The maritime industry is facing significant regulatory changes aimed at reducing greenhouse gas (GHG) emissions. The latest EU regulations, particularly the updated Monitoring, Reporting, and Verification (MRV) requirements, are set to impact offshore vessels starting from January 1, 2025. These regulations mandate comprehensive emissions monitoring and reporting for vessels with a gross tonnage (GT) of 400 and above. Additionally, offshore vessels with a GT of 5,000 or more will be included in the Emissions Trading System (ETS) starting from January 1, 2027. Shipowners must prepare for these changes to ensure compliance and leverage the opportunities for innovation and sustainability.

Key Developments

Updated MRV Requirements: 

Starting from January 1, 2025, offshore vessels with a gross tonnage (GT) of 400 and above will be required to comply with the EU MRV regulations. This extension ensures that emissions data from these vessels are accurately reported and verified, providing a reliable basis for future regulatory measures.

Inclusion in the ETS: 

Offshore vessels with a GT of 5,000 or more will be included in the EU ETS starting from January 1, 2027. The ETS operates on a “cap and trade” principle, where a limit is set on the total amount of GHG emissions, and companies can trade allowances. This system incentivizes shipowners to reduce their carbon footprint.

Potential Outcomes and Consequences

1. Compliance and Reporting Requirements: 

Shipowners will need to invest in systems and processes to accurately monitor and report emissions as required by the MRV regulations. While this does not directly imply purchasing emission allowances, it involves ensuring accurate data collection and verification, which may require operational adjustments and investments in monitoring technologies.

2. Increased Costs from ETS: 

If offshore vessels are included in the ETS from 2027, shipowners will need to purchase emission allowances, which could increase operational costs. However, these costs can be offset by the economic incentives provided by the ETS, such as the ability to sell surplus credits.

3. Technological Advancements: 

The new regulations will likely drive innovation in the maritime industry. Shipowners will be encouraged to adopt renewable and low-carbon fuels, such as advanced biofuels, e-fuels, hydrogen, and ammonia. These advancements will not only help in meeting regulatory requirements but also position companies as leaders in sustainable shipping.

4. Enhanced Market Competitiveness: 

Compliance with the new regulations can enhance a company’s reputation and competitiveness in the market. Customers and stakeholders are increasingly prioritizing sustainability, and companies that demonstrate a commitment to reducing their environmental impact will likely gain a competitive edge.

4 Key Questions Every Offshore Shipowner Should Ask to Navigate the New MRV Regulations

As the maritime industry faces new regulatory challenges, here are four essential questions every offshore shipowner should ask when preparing for the latest MRV requirements:

Scope & Compliance:

"Do I fully understand how the new MRV regulations apply to my fleet, and what are the key definitions of ‘offshore ships’ and ‘ports of call’ I need to consider?"

Reporting & Verification:

"What specific data do I need to report, and how can I ensure my emissions data is verified accurately?"

Operational Adjustments:

"What changes do I need to implement to comply with MRV standards while minimizing costs?"

Certified Biofuels:

"When should I explore certified biofuels, and how can I ensure they meet sustainability criteria?"

Note: The full article by VPS can be read here. 

 

Photo credit: VPS
Published: 26 September, 2024 

The Marine Fuel Industry Committee of the China Petroleum Circulation Association (CPCA) on Tuesday (24 September) announced a list of ships approved to be fitted with mass flowmeters (MFMs). 

CPCA held an annual meeting where the list of ships were released from 19 to 20 September. Bunker suppliers, state ministries, relevant leaders of industry associations and MFM manufacturers were present for the event. 

In his speech, Zheng Wen, President of CPCA, said the release of MFM standards and whitelist of ships are the first step in promoting the use of MFMs in China's ship fuel supply industry.

He added the milestone is of great significance to ensuring that China’s bunker suppliers operate in accordance with the law, promoting the standardised operation of measurement in the marine fuel industry, and maintaining the reputation of China's bunker fuel supply market. 

“It is hoped that in the subsequent promotion and use process, relevant units will be able to further improve the ship whitelist system, continuously enhance the promotion and use of MFM, expand the number of whitelists, and allow more oil supply ships that provide high-quality and efficient services to be recognized by the market,” he said.

The meeting solemnly released the first batch of whitelist ships that passed the standard review. Certificates were issued to operators of the ships. 

The following is the first batch of whitelisted ships that were approved to be fitted with a MFM:

1. ZHONG RAN 31
2. ZHONG RAN 33 
3. ZHONG RAN 39
4. HAI GONG YOU 31 
5. ZHAO YANG 503 
6. RUN ZE 11 
7. HONG DA HAI 88 
8. DONG FANG ZHAO YANG
9. HONG XIN 102
10. JIA CHENG 1

Mr. Wang Min, representative of China National Energy Shipping, said that the release of the list has given hope of solving the problem of bunker fuel quantity. 

Wang Liguo, Executive Director of the Marine Fuel Industry Committee of the CPCA and Chairman of China Marine Bunker (Petro China) (CHIMBUSCO), added it is hoped that all member units of the association will actively contribute to the green transformation of the ports and shipping industry, accelerate the planning and construction of the marine biofuel industry chain, actively participate in the construction of the clean bunker fuel industry chain, and to jointly build a sustainable future for green shipping.

Related: China: Bunker suppliers ink convention and cooperation deal at MFM Alliance Conference
Related: China: CPCA releases convention for bunkering industry to promote mass flow meter at conference
Related: China: Bunker suppliers among stakeholders convening for upcoming mass flow meter conference 

 

Photo credit: China Petroleum Circulation Association
Published: 25 September, 2024 

The Port of Long Beach on Monday (23 September) said it has signed a memorandum of cooperation with Shenzhen Port Group, Hutchison Ports YANTIAN (YANTIAN), South Coast Air Quality Management District (South Coast AQMD) and the North American Representative Office of Shenzhen to collaborate on decarbonising ocean trade and inspire other similar efforts to build a green maritime economy around the Pacific Rim.

Representatives for the parties signed the memorandum in Shenzhen, China, on 22 September. It establishes a framework to support coordination of technical exchanges and programmes, initiate shared efforts to deploy clean technologies, promote sustainable infrastructure development within the maritime industry and promote economic development prioritising sustainability and public health.

Potential collaborations may include maritime technology demonstration projects, programmes to attract cleaner oceangoing vessels – because vessels are a key contributor to emissions associated with international trade – and information exchanges conducted through virtual meetings and regional workshops.

“One of the most important parts of strategic partnerships like this is the ability to target shipborne emissions, a source we have little power to regulate as a local port authority,” said Port of Long Beach CEO Mario Cordero. 

“We see the potential for this agreement to make fleets cleaner sooner. The technologies and practices we develop through this agreement also have the potential to have a positive impact on the environment and economies far beyond our two ports and cities.”

“The Port of Long Beach is honoured and proud to be part of a collective effort to operate more sustainably and develop the green economy, all while protecting public health,” said Long Beach Harbor Commission President Bonnie Lowenthal. 

“This type of international collaboration is critical to our shared goal of decarbonising shipping in the decades ahead.”

“Working together with our port partners, we have seen firsthand how we can accelerate the reduction of harmful emissions in nearby communities,” said South Coast AQMD Executive Officer Wayne Nastri. “The South Coast AQMD is excited to work with all our partners in this agreement to continue developing innovative strategies to reduce emissions and improve public health.”

“Building on the signing of this memorandum, we will drive initiatives in new fuel bunkering technologies, such as green methanol, and the development of zero-carbon ro-ro terminals,” said Shenzhen Port Group Chairman Zhaoyang Hu. 

“By enhancing communication and information sharing between the two ports, we aim to improve cargo transportation efficiency and establish more advanced green shipping corridors. These efforts will play a key role in achieving global Dual-Carbon Goal and fostering deeper economic and trade cooperation between China and the U.S.”

“The shipping industry is a cornerstone of global trade and economy. We recognise the importance of establishing partnerships and aligning our efforts towards common goals,” said YANTIAN Managing Director Lawrence Shum.

“Through this memorandum, we commit to collaborating on technical exchanges, knowledge sharing and project cooperation, positioning ourselves as ‘pioneers’ in the green ocean economy of the Pacific Rim.” 

The memorandum will also explore the possibility of a Sister Ports Agreement between the Port of Long Beach, the second-busiest seaport in the United States, which handled 8 million twenty-foot equivalent units (TEUs) in 2023, and YANTIAN, which is one of the world’s largest container terminals run by a single operator. 

 

Photo credit: Port of Long Beach
Published: 25 September, 2024