Eline Hellem Langeland
Senioradvokat
+47 456 70 215 e.langeland@selmer.no
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EU MRV – Clarifications on applicability for offshore ships from 1 January 2025
Publisert
Since 1 January 2018, certain cargo and passenger ships of 5,000 Gross Tonnage (GT) have been subject to obligations for monitoring, reporting and verification of greenhouse gas emissions under the Regulation (EU) 2015/757 of 29 April 2015 (EU MRV) when travelling to, from or within EEA ports. The regulation covers emissions of CO2 (carbon dioxide), CH4 (methane) and N2O (Nitrous oxide). As from 1 January 2025, also "offshore ships" of 400 GT or more will be required to report its emissions.
The implementation of offshore ships in the EU MRV is part of the future implementation of offshore ships of 5000 GT and above into the EU Emission Trading System (EU ETS). From 1 January 2027, offshore ships of 5000 GT and above will be fully implemented in EU ETS.
A key question under the EU MRV, has been how the term "offshore ships" in the regulation shall be understood. The term "offshore ships" is broad, and from a legislator perspective insufficient to determine which ships that will be covered by the regulation and subject to the reporting requirements from 1 January 2025. A new Amendment to the EU MRV [1] from the EU Commission dated 16 October 2024 (EU MRV Amendment) provides guidance in this respect.
EU MRV AMENDMENT – definition of "offshore ships"
The EU MRV Amendment inserts a new Part AA in Annex 1 to the EU MRV to define offshore ships. The new Part AA governs greenhouse gas emissions from offshore ships released during voyages to, from, and within EEA ports of call. The following ships are covered, provided that the ship is "designed or certified to perform service activities offshore or at offshore installations":[2]
It should be noted that the wording refers to which service activities offshore the ship is designed or certified for, not what activities the vessel has performed on the relevant voyage.
We encourage all shipowners, ISM-managers, bareboat charterers and other stakeholders operating within the offshore industry to seek guidance navigating their obligations under EU MRV, and how the newly introduced definition of "offshore ships" will impact their reporting obligations of greenhouse gas emissions.
Further upcoming clarifications?
The EU Commission has received feedback from stakeholders on other difficulties with the application of the EU MRV regulation on offshore ships, including the definition of "port of call" and the calculation of greenhouse gas emissions being based on each ship's voyage to, from or between EEA "ports of call".
The definition of "port of call" for offshore ships is a port where the ship "stops to relieve the crew".[3] The definition has been flagged by several stakeholders as unsuitable for the operational characteristics of the offshore industry. Offshore ships may perform operations in EEA waters without calling any port within the EEA or call an EEA port and work for prolonged periods outside the EEA. The current definition introduces several uncertainties in its application and may potentially allow for circumvention.
The EU Commission acknowledges the request from stakeholders to further develop guidance to the MRV regulations in the EU MRV Amendment, including the definition of "port of call". It remains to be seen whether further amendments will be issued in the near future.
[1] Regulation (EU) 2023/957 amending Regulation (EU) 2015/757
[2] There is an express exception for icebreakers
[3] EU MRV Article 3 letter z cf. Directive 2003/87/EC art. 3 letter z)
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