Marine Environment
 
Compliance Services

The Monitoring, Reporting, and Verification (MRV) system is a regulatory framework developed by the European Union (EU) and the International Maritime Organization (IMO) to ensure transparency and accountability in greenhouse gas (GHG) emissions, particularly carbon dioxide (CO₂), from ships engaged in international trade. Introduced as part of global efforts to reduce emissions, the MRV supports decarbonisation strategies by providing accurate, reliable, and verified emissions data.

Origin and Objective
The MRV system aims to monitor CO₂ emissions, report the data transparently, and verify compliance through accredited third-party verification. The EU MRV (Regulation (EU) 2015/757) applies to ships over 5,000 gross tonnages (GT) calling at ports within the European Economic Area (EEA), monitoring voyages to, from, and between EEA ports. The IMO’s Data Collection System (DCS) mandates global data collection for international voyages. Both systems are aligned with broader goals such as the EU Green Deal and IMO’s strategy to reduce shipping’s carbon intensity by 40% by 2030 and achieve net-zero emissions by 2050.

What is Monitored?
Ship operators collect data on fuel consumption by type, distance travelled, time at sea, and, optionally, cargo carried or capacity utilisation. Under the EU MRV, data is reported for each voyage, while the IMO DCS requires annual reporting. Verified reports are submitted to the European Commission for the EU MRV and the IMO for DCS compliance.

Who Must Comply?
The MRV requirements apply to ships with a GT of 400 or more. The EU MRV focuses on regional emissions from EEA-related voyages, while the IMO DCS has a global scope, covering all international voyages. Under the EU MRV, emissions data is publicly disclosed, fostering transparency, while the IMO DCS data remains confidential and shared with the IMO Member States.

Significance and Impact
Compliance with MRV regulations ensures operational transparency, supports decarbonization strategies, and enables benchmarking of fleet performance. The system provides critical data for assessing the effectiveness of emissions reduction initiatives and aids the industry in adopting energy-efficient technologies, aligning with global environmental goals.

FuelEU Maritime is a regulatory initiative by the European Union (EU), part of the Fit for 55 legislative packages, issued to reduce greenhouse gas (GHG) emissions in the maritime sector. Its purpose is to align maritime transport with the EU’s climate goals, contributing to carbon neutrality by 2050 and a 55% reduction in emissions by 2030 compared to 1990.

Origin and Objective

Primarily regulated by Regulation (EU) 2023/1805, FuelEU Maritime aims to accelerate the transition to renewable and low-carbon fuels in maritime transport. It seeks to decarbonise the industry, ensure sustainable growth, promote cleaner technologies, reduce dependence on fossil fuels, and position the EU as a global leader in sustainable maritime transport.

What is Monitored

The regulation monitors:

• Carbon intensity of fuels used by ships, measuring CO₂-equivalent emissions per megajoule (gCO₂e/MJ).
• Fuel consumption and total GHG emissions of ships during voyages:
  • Within the EU.
  • On 50% of voyages to or from EU ports.

Who Must Comply

Compliance is mandatory for:

• Operators of ships with over 5,000 gross tonnages (GT), regardless of the ship’s flag, provided they operate in EU waters.

These operators must:

• Develop and submit monitoring plans for fuel consumption and emissions.
• Annually report fuel consumption, carbon intensity, and compliance status.
• Ensure reports are verified by accredited and independent entities.

Compliance Mechanisms and Penalties

To meet the targets, operators can:

• Use renewable or low-carbon fuels like hydrogen, ammonia, and biofuels.
• Implement energy-efficient technologies, such as wind-assisted propulsion or shore power connections.
• Purchase compliance credits or pay fines in case of non-compliance.

Funds collected through penalties are reinvested into clean projects within the maritime sector, reinforcing the transition to sustainable practices.

Importance

FuelEU Maritime is a vital step in addressing climate change, reducing air pollution in coastal regions, fostering technological innovation, and consolidating the EU’s leadership in sustainable maritime transport. It also sets global benchmarks, potentially inspiring similar initiatives in other regions and contributing to the worldwide decarbonisation of the maritime sector.

The Carbon Intensity Indicator (CII) is an environmental metric established by the International Maritime Organization (IMO), a specialized agency of the United Nations. This regulation is part of global efforts to reduce the carbon footprint of the maritime sector, aligning with the goals of the Paris Agreement and the IMO’s decarbonization targets.

Origin and Objective
Introduced as part of the IMO’s initial strategy to reduce greenhouse gas emissions in maritime transport, the CII aims to evaluate and improve the carbon efficiency of ships. By 2030, the IMO seeks to reduce the carbon intensity of the global fleet by 40% compared to 2008 levels, with even more ambitious targets for 2050. The CII promotes cleaner and more energy-efficient operational practices, encouraging the adoption of sustainable technologies and behaviours.

What is monitored?
The CII measures the amount of carbon dioxide (CO₂) emitted per ton of cargo transported per nautical mile. To calculate this, the following data is monitored:

• Annual fuel consumption (type and amount used).
• Distance travelled.
• Amount of cargo transported.
• Time spent at sea and in port.

Using this data, the indicator is calculated annually, resulting in an environmental performance rating on a scale from A (excellent) to E (poor). Ships rated D or E for three consecutive years are required to implement a corrective action plan.

Who must comply?
The CII applies to large ships with a gross tonnage (GT) of 5,000 or more, covering a significant portion of the international merchant fleet, such as bulk carriers, tankers, and container ships. Affected vessels must report their data to the IMO’s Data Collection System (DCS), which ensures verification and compliance through independent entities like classification societies.

Importance and Impact
Adopting the CII is essential to:

• Promote transparency and environmental accountability in maritime transport.
• Encourage innovation in clean fuels and energy-efficient technologies.
• Maintain competitiveness by meeting the demands of customers and stricter environmental regulations.

This initiative reinforces the maritime sector’s commitment to sustainability, accelerating the transition toward greener and more efficient transport operations worldwide.

The Energy Efficiency Existing Ship Index (EEXI) is a regulation developed by the International Maritime Organization (IMO) as part of its continuous efforts to reduce greenhouse gas (GHG) emissions from the maritime sector. This regulation is part of the MARPOL Convention Annex VI, which addresses air pollution from ships and aligns with the IMO’s long-term strategy for decarbonizing the maritime industry.

Origin and Purpose

The IMO, a specialized United Nations agency, introduced the EEXI with the goal of:

• Reducing Emissions: Promoting energy efficiency in existing ships and reducing their carbon footprint.
• Supporting Decarbonization: Contributing to the IMO’s targets of a 40% reduction in carbon intensity by 2030 and a 70% reduction by 2050, compared to 2008 levels.

What is Monitored?

The EEXI assesses the design-based energy efficiency of existing ships, using parameters such as:

• Engine Power: The maximum capacity of main and auxiliary engines.
• Specific Fuel Consumption (SFC): Engine efficiency measured in grams of fuel per kilowatt-hour.
• Carbon Factor (CF): Conversion of CO₂ emissions based on the type of fuel used.
• Capacity: Maximum cargo carried, measured in deadweight tons (DWT) or gross tonnage (GT).
• Reference Speed (V_ref): The ship’s speed is at 75% of the engine’s maximum continuous rating.

Ships must calculate their Attained EEXI (based on the ship’s specifications) and compare it to the Required EEXI (IMO-defined standard) to ensure compliance.

Who Must Comply?

The EEXI applies to all ships above 400 GT operating in international trade. Ship types covered include:

• Bulk carriers
• Oil tankers and gas carriers
• Container ships
• General cargo ships
• LNG carriers
• Ro-Ro ships, among others.

The Importance of EEXI

The EEXI is a crucial response to the global demand for sustainability in the maritime sector. It ensures:

1. Compliance with Climate Goals: Contributes to the IMO’s Initial GHG Strategy and the commitments of the Paris Agreement.
2. Promotion of Energy Efficiency: Reduces the gap between existing and new ships in terms of efficiency.
3. Encouragement of Innovation: Promotes investment in green technologies and cleaner fuels.
4. Standardization of Requirements: Establishes uniform standards for all vessels, promoting fair competition.

By implementing the EEXI, the maritime industry reinforces its commitment to sustainability, operational transparency, and alignment with Environmental, Social, and Governance (ESG) principles, demonstrating leadership in the transition toward greener practices.

The EU ETS (European Union Emissions Trading System) was established in 2005 by the European Union, becoming the world’s first and largest carbon market. Its primary goal is to combat climate change by promoting the effective and cost-efficient reduction of greenhouse gas (GHG) emissions.

Origin and Objective

Developed as part of the European Union’s climate policies and aligned with the Paris Agreement, the EU ETS uses a market-based approach to encourage the transition to cleaner and more sustainable practices. The system aims to progressively reduce GHG emissions in sectors responsible for approximately 40% of total EU emissions, contributing to the EU’s target of achieving climate neutrality by 2050.

How It Works

The EU ETS operates under the “cap-and-trade” principle:

• Cap (Limit): A cap is set on total emissions for participating companies, which is gradually reduced annually to encourage consistent emission reductions.
• Allowances: Companies receive or purchase permits that allow them to emit one ton of CO₂ per allowance.
• Trade: Organizations emitting less than their allocated limit can sell surplus allowances to others exceeding their cap, creating a financial incentive to reduce emissions.

Monitoring and Compliance

The system closely monitors emissions from:

• Power plants and energy-intensive industries (e.g., steel, cement, glass);
• Commercial aviation within the European Economic Area;
• Buildings and road transport, which will be included starting in 2024.

Companies in these sectors are required to report and verify their emissions annually, ensuring compliance with the regulations. Non-compliance can result in significant financial penalties.

Importance

The EU ETS is a cornerstone of the EU’s climate policy, driving innovation, encouraging the adoption of low-carbon technologies, and serving as a global model. By including new sectors and reinvesting auction revenues into green projects, the system reinforces its commitment to a fair and sustainable transition.

The Ship Energy Efficiency Management Plan (SEEMP) is an operational and management tool established by the International Maritime Organization (IMO) under Annex VI of the MARPOL Convention. This regulation originates from the IMO’s global guidelines to reduce greenhouse gas (GHG) emissions in the maritime sector and is part of a broader strategy to promote more sustainable navigation practices.

The primary objective of SEEMP is to enhance the energy efficiency of ships and contribute to carbon emission reductions, aligning with the IMO’s decarbonisation goals, which include a 40% reduction in carbon intensity by 2030 and a 70% reduction by 2050, based on 2008 levels.

What is monitored?

SEEMP involves the collection and monitoring of data on:

• Fuel oil consumption (by type);
• Distance travelled;
• Hours underway;
• Carbon intensity of operations, according to the Carbon Intensity Indicator (CII).

This data is recorded and reported annually to the ship’s flag state, which subsequently forwards it to the IMO for global analysis and tracking.

Who is required to comply?

The SEEMP is mandatory for all ships of 400 gross tonnage (GT) and above engaged in international voyages, as stipulated by MARPOL Annex VI. Furthermore, ship operators and owners are responsible for ensuring the implementation and regular updating of the SEEMP, maintaining compliance with applicable regulations.

Divided into three main parts (Energy Efficiency Measures, Data Collection Plan, and Operational Carbon Intensity Plan), the SEEMP fosters a culture of continuous improvement and technological innovation, encouraging the maritime sector to adopt practices that simultaneously meet regulatory requirements, reduce operational costs, and mitigate environmental impacts.

The regulation governing energy audits in the maritime sector originates from the International Maritime Organization (IMO) through guidelines such as the Ship Energy Efficiency Management Plan (SEEMP), the Energy Efficiency Design Index (EEDI), and the Energy Efficiency Operational Indicator (EEOI). These regulations are complemented by international standards like ISO 50002:2014 and regional frameworks promoted by agencies such as the European Maritime Safety Agency (EMSA).

Origin and Purpose
The energy audit was designed as a strategic tool to enhance energy efficiency, reduce operational costs, ensure compliance with environmental regulations, and minimise the carbon footprint of maritime operations. In the maritime context, these audits evaluate the energy systems of vessels and related operations, proposing measures for optimisation and reducing greenhouse gas (GHG) emissions.

What is Monitored
During the audit, energy consumption patterns, the performance of equipment such as engines and auxiliary systems, operational practices (e.g., voyage planning and speed management), opportunities for retrofitting, implementing more efficient technologies, and operational adjustments are analysed.

Who is Obliged to Comply
Compliance is mandatory for shipowners and operators required to adhere to international regulations, such as IMO’s MARPOL Annex VI. Adherence to these standards is essential not only to avoid penalties but also to maintain competitiveness in the global maritime market, given the growing focus on sustainability and energy efficiency.

Thus, energy audits not only deliver economic and environmental benefits but also establish a foundation for the reliable and sustainable operation of vessels.