Improving performance, reducing risk

MRV Regulation

The verification process

Improving performance,

reducing risk

Includes:

Who and what does the MRV Regulation apply to?

All commercial voyages

to, from and in-between

EU or EEA

(Iceland/Norway) ports

MRV Regulation compliance timeline

2016 2017 2018 2019 2020+

JULY

2015

Entry into

force

AUG

2017 Monitoring plans

submitted

APR

2019 1st Annual emissions

report submitted

PREPARATION PERIOD

Verific

atio

n a

nd D

ocum

ent o

f Com

plia

nce is

sue s

ubsequently

repeate

d a

nnually

1st MONITORING

PERIOD

2nd MONITORING

PERIOD

Gap Analyses

A beneficial gap analysis

against either your

monitoring plans, or your

emissions report data, or

both, can be tailored to

your specific needs.

Monitoring plans

assessed

Monitoring plan

assessments are required by

the regulation when first

created or when any

changes are required. We

will work with you to assess

your monitoring plans to

ensure they comply.

AUG

2017

Emissions Report

Verification 1st Document of

Compliance

JUN

2019

We can perform the

required annual emissions

verification and issue the

Document of Compliance.

We will work with you to

verify your data and

information so that a

Document of Compliance

can be issued.

What will it mean to me?

To be prepared and reviewed by 2017 for each vessel

Will cover the method to monitor CO2/ Fuel, distance and cargo

The plan will be assessed for conformity by an accredited verifier

Monitoring Plan

Owner/operators need to engage with a 3rd Party accredited Verifier to review and approve their reports

Verification

On an annual basis, reports are submitted to the EU

Reporting

These are discussed in more detail in the following slides

What are we monitoring for each voyage?

Co2 emitted

• As function of fuel consumption

• Amount and emission factor for each fuel type

• Includes M/E, A/E, G/Ts, IGGs, Boilers

Transport work

• Distance travelled (actual or shortest)

• Cargo carried (MT, m3, TEU, cargo units, lane numbers or passengers)

• Transport work = distance x cargo

Date, time and ports

• Departure and arrival ports

• Date and hour of departure / arrival (GMT)

• Time spent at sea (excludes anchoring)

Exceptions

- Ships only calling EU ports all year only need to monitor annually

- Ships performing > 300 voyages per calendar year only need to monitor annually

Four permitted methods to measure fuel consumption

These methods may vary in complexity and cost. They CAN be used in combination.

Bunker delivery note and periodic

stocktake of fuel tanks*

Bunker fuel tank measurements on

board

Fuel flow meters for applicable

combustion processes

Direct emissions monitoring

*cannot be used where cargo is burnt as fuel (e.g. LNG carriers)

What does the Monitoring Plan look like?

Basic Data Activity Data Data gaps Management

• Company details

• Emission sources

& fuel types,

• Emission factors,

• Procedure for

completeness

• Methods & procedures

for;

• Fuel consumption

monitoring

• Density

• Uncertainty

• Quality assurance of

measuring equipment

• Completeness of

voyages

• Distance procedure

• Cargo carried

• Check of MP

• Control activities

e.g. IT system

• Internal review of

data

• Corrective actions

• Outsourced

activities and

documentation

• For fuel, distance cargo

and time at sea

What do I need to monitor and report annually?

Aggregated annual

data

• Amount and emission

factor per fuel type in total

• CO2 emissions (from EC

ports, to EC ports,

between EC ports, at

berth and total

• Fuel consumptions

• Distance travelled

• Time at sea & at berth

• Transport work

• AVERAGE ENERGY

EFFICIENCY

Fuel

Consumption

Total annual fuel consumption

Total distance travelled

Total annual fuel consumption

Total transport work

CO2

emissions

Total annual CO2 emissions

Total distance travelled

Total annual CO2 emissions

Total transport work

Exceptions:

Non-commercial voyages

What does the Annual Emissions Report Template look like?

Annual Emissions Report Template

Ship

identification

Verification

Monitoring

method and

uncertainty

Results

• IMO number

• Technical efficiency

• Owner

• Who the verifier is

• Accreditation number

• Method used

• Emission sources

• Uncertainty

• Fuel consumption & CO2 – total, between ports, departed from and to

• Distance travelled / time at sea / transport work

• Average energy efficiency

Who to report to?

Verifier assesses work done by

companies, outside the system. In the

system they notify issuance of the

document of compliance once the

emissions report has been

successfully verified.

Commission will have access to the

system to receive information on

reporting and notification obligations

of the companies and verifiers

respectively.

Member States (and Flag

States)

will receive / have access to the

emissions report and

documents of compliance of

ships flying their flag

Company – emissions report

for each of their ships

Verification – how will it work?

Verifiers will:

• Be accredited by a recognised body

• Assess monitoring plans for completeness, accuracy, relevance and

conformity

• Assess emissions reports and verify they are accurate and correct to a

reasonable level of assurance

• Assessment may be done by inquiry, document review, observation, site

visit or remotely

• Confirm whether data is within the 5% materiality level

• Detail misstatements and non-conformities and give an opportunity to

correct

• Issue a verification report and document of compliance (DoC)

• Inform the commission and Flag State of DoC issue.

Verification – how will it work?

Companies will:

• Provide the verifier at each verification stage with relevant monitoring

plan and emissions report templates and documentation, for example

procedures and processes, voyage lists and bunkering documents

• Demonstrate compliance with the monitoring plan

• Demonstrate how they have obtained, calculated and arrived at, final

reporting information and data

• Correct misstatements and non-conformities identified by the verifier

What might the verification process look like?

Monitoring plan conformity

assessed

Compliant Non-compliant

Risk assessment

Develop approach

1) Verification plan

2) Sampling plan

Verification of evidence

1) Documentation

2) Systems

3) Calculations

4) Information

5) Data

Draft verification report and draft

DoC produced

Draft verification report and draft

DoC produced

What does the Document of Compliance Template look like?

Statement confirming compliance

Ship particulars

• Name of ship / IMO number

• Port of registry / home port

• Ship category

• Flag state / registry

• Keel laying date

• Gross tonnage

Ship owner details

• Name

• Address

Company fulfilling the obligations (voluntary field)

• Name

• Address

Verifier

• Accreditation number

• Name

• Address

LRQA – Lloyd’s Register Quality Assurance – UKAS Accredited

40 Offices worldwide

60,000+ Certificates worldwide

1,500+ Employees

30+ Year’s experience and

expertise

45,000 Clients worldwide

120+ Countries worldwide –

Assessments and Certification

LRQA has verified around

1bn tonnes of Co2 under the EU ETS

11 years Delivering carbon verification

services for the EU Emissions

Trading Scheme

c.50 Accreditation bodies worldwide

recognise LRQA

– As an accredited verification body for the EU Emissions

Trading Scheme and ISO 14064 Part 1, you can be sure

that your data will be verified by experienced industry

experts.

– As a globally trusted and experienced verifier, you can be

sure that your data is in the right hands.

Verification services

Our range of verification services have been designed to

confirm compliance against the MRV Regulation giving you

piece of mind.

Lloyd’s Register and variants of it are trading names of Lloyd’s Register Group Limited, its subsidiaries and affiliates.

Copyright © Lloyd’s Register Quality Assurance Limited 2016. A member of the Lloyd’s Register group.

Improving performance, reducing risk

Stefano Brigandì

Marine Client Manager for Italy&Monaco

M +39.345.4591992 E stefano.brigandi@lr.org

Lloyd’s Register EMEA

Via Sottoripa 1A/112, 16124 Genova.