Is ‘Emissions Control’ Impinging on Competitiveness?

Statistics show that emissions from the global shipping industry amount to approximately 1 billion tonnes a year; this being equivalent to 3% of the world’s total greenhouse gas emissions and 4% of the EU’s total emissions. Having said this, one must also keep in mind that 90% of world trade is carried out by the international shipping industry; thus further mitigating the emission rates caused by the shipping industry per se, and rendering them negligible in a worldwide context. This begs the question as to whether further emissions control is actually necessary or if it is but a burden to competitiveness in the shipping sphere.

In light of the aforementioned reality, the European Union Regulation 2015/757 on the monitoring, reporting and verification of carbon dioxide emissions from maritime transport, and amending Directive 2009/16/EC (hereinafter referred to as the MRV Regulation) came into force on the 1st of July 2015. The MRV Regulation applies only to cargo-carrying tonnage exceeding 5,000gt and mandates the reporting of the CO2 and cargo work of vessels sailing to and from ports within the jurisdiction of a European Union member state. The MRV Regulation further demands a ship-specific monitoring plan for ships sailing to and from European ports, alongside an annual emission report; both drafted by the shipping companies concerned and subject to verification by accredited verifiers. These verified documents shall then be submitted to the European Commission and the Flag States which are held responsible for ensuring the enforcement of the MRV. The Commission has been further empowered to adopt delegated acts to amend methods and rules set out in the annexes of the MRV Regulation in order to take into account international shipping standards. In the case of ships having failed to comply with the Regulation, the option of detention or expulsion may be enforced. The latter means that every Member State shall refuse entry of the ship concerned into any of its ports until the company in default fulfils its monitoring and reporting obligations.

The introduction of the MRV Regulation is expected to lead to reductions of up to 2% of the aforementioned Union emissions. This is to be achieved by way of public access to emissions data previously hindered by a lack of reliable information on the fuel efficiency of ships. More reliable data will lead to a sounder basis for the uptake of many cost-negative measures which would reduce greenhouse gas emissions from maritime transport. This may be achieved by identifying the most fuel-efficient vessels – which would in turn enhance competitiveness within the sector – and by encouraging new technologies and operational measures adopted to improve efficiency and lower operational costs.