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 

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

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