Monitoring, Reporting and Verification of Greenhouse Gas Emissions in the EU 7th Chemical & Product Tanker Conference, London, 17/03/2015 Heiko Kunst Unit 'International Carbon Market, Aviation and Maritime' European Commission, DG Climate Action 1 Climate Action Why limiting increases in global temperatures to 2°C above per-industrial levels? Source: National Geographic 2 Climate Action The need to act on maritime CO2 emissions: Estimated growth of CO2 emissions from international shipping (in million tons) Data sources: 2nd IMO GHG study 2009 for emissions until 2007; MEPC 63/INF 2 for average scenario projections 2010-2050 3 Climate Action The need to act on maritime CO2 emissions: All other sectors covered by EU measures 4 Climate Action Gradual approach to reduce GHG emissions 1. Implementing a system for monitoring, reporting and verification (MRV) of emissions 2. Definition of reduction targets for the maritime transport sector 3. Application of a market-based measure (MBM) • Robust MRV as foundation of any measure • MRV provides reliable information on ship efficiency • EU MRV proposal to contribute to international debate Climate Action 5 EU initiative of 28 June 2013 • Legislative proposal for EU system for monitoring, reporting and verification of GHG emissions from ships • Communication on the EU strategy to reduce maritime GHG emissions • Impact Assessment • Intensive stakeholder involvement • On-going legislative adoption procedure 6 Climate Action MRV: Scope • Ship voyages related to the EU • Flag-neutrality • Exclusion of small emitters below 5000 GT • Exclusion of special ships (e.g. military, fishing) • Focus on CO2 as predominant greenhouse gas emission from ships • Ship efficiency (expressed by different indicators for technical & operational efficiency building on existing indicators such as EEDI, EIV, EEOI) Climate Action 7 Compliance cycle Enforcement measures (if necessary) National enforcement authority Provide a list of ships that may be in breach with the regulation Submit monitoring plan and emissions reports Ship Verifier Issue a document of compliance Submit verified emissions reports EU central body 8 Climate Action State of play of adoption of MRV Regulation • Content of Regulation agreed by European Parliament and Council in November 2014 • Final text formally agreed by Council on 5 March 2015 • Formal adoption of the Regulation by EP Plenary in April 2015 • Formal entry into force: 1 July 2015 9 Climate Action Next milestones for implementation of MRV • Preparation and adoption of supporting technical legislation in 2015/ 2016 including stakeholder and expert involvement • Accreditation of verifiers in 2017 • Verification of monitoring plans: 2nd half 2017 • Start of monitoring in 2018 …depends on possible introduction of global MRV by IMO 10 Climate Action Stakeholder and expert consultation • Stakeholder meetings (broad participation) • Expert meetings (limited number of participants to allow for detailed discussions) • Involvement of European & international stakeholders & experts • Framework & organisation to be decided • Formal kick-off after formal adoption of MRV Regulation 11 Climate Action International dimension of EU MRV Regulation • EU MRV measure to be implemented from 2017 => IMO could agree global MRV before EU system is implemented on the ground • EU measure as contribution to global MRV discussions (EU submissions to MEPC 66, 68) • Continued dialogue with third states & stakeholders • Adjustment of EU-MRV in the event of agreement on global MRV (to avoid double reporting) 12 Climate Action Global discussion on MRV • Progress made after agreement on Resolution on technical co-operation and technology transfer at MEPC 65 • Key elements of global data collection system identified • Priorities for 2015/16: • Further discussion on legal framework to come to agreement as soon as possible • Development of IMO guidelines to operationalise high level requirements (monitoring methods, data quality checks) Climate Action 13 Global discussion on MRV & further measures • MRV/ data collection as 1st step of gradual approach • Gradual approach requires broad data scope of data collection system • Need for mandatory & robust data collection system • Concepts for the introduction of operational efficiency standards & efficiency metrics to be tested 14 Climate Action Thank you for your attention! Please visit our website: http://ec.europa.eu/clima/policies/transport/shipping/index_en.htm 15 Climate Action