ARTICLE
25 November 2013

Toward A System For Reducing Emissions From The Shipping Sector

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Jones Day

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On June 28, 2013, the European Commission published a proposal for Regulation EU 525/2013 on "the monitoring, reporting and verification of carbon dioxide emissions from maritime transport."
United States Transport

On June 28, 2013, the European Commission published a proposal for Regulation EU 525/2013 on "the monitoring, reporting and verification of carbon dioxide emissions from maritime transport." The Regulation aims to establish an EU-wide system for the monitoring, reporting, and verification ("MRV") of all emissions from combustion of fuels by large ships starting in January 2018. Only "large" vessels (5,000 gross tons or more) arriving at, within, or departing from ports under the jurisdiction of a Member State would be affected.

Companies (which includes the owner, manager, charterer, or any other person who has assumed the responsibility from the ship owner for its operations) would have to bear MRV obligations. Companies must submit an annual monitoring plan, indicating the method chosen to monitor and report emissions and other climate-relevant information, as well as an emissions report to an independent and accredited verifier. Information on the emissions reported in the concerned companies' compliance will be made publicly available by the European Commission.

The proposal leaves the system for the assessment of penalties to the Member States. It nevertheless provides for the possibility for national State port authorities to issue an expulsion order in the case of noncompliance with the monitoring and reporting requirements.

The purpose of the regulation is to promote the reduction of greenhouse gas emissions in order to achieve a 2 percent reduction compared to business as usual, thus completing the existing EU system addressing greenhouse gas emissions from certain stationary sources and the aviation sector. This new proposal begins the EU legislative process and is expected to enter into force on July 1, 2015.

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