EU MRV: “Offshore ships” now defined and included by the European Commission
Starting 1 January 2025, offshore ships must comply with EU MRV emission reporting rules as the European Commission defines their role in meeting climate targets.
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On 16 October 2024, the European Commission adopted a delegated act to clarify the inclusion of greenhouse gas emissions from offshore vessels under the Monitoring, Reporting and Verification (MRV) Regulation for maritime transport. While cargo and passenger ships of 5,000 gross tonnage (GT) or above have already since 1 January 2018 been required to submit revised and verified monitoring plans for CO2, CH4, and N2O emissions on voyages to or from ports in the European Economic Area, offshore ships have until now not been subject to the regulation. With this recent adoption, the term ”offshore ships” is now clearly specified, identifying which vessels shall be covered by the regulation from 1 January 2025.
Offshore ships: Who is affected
The following vessels, designed to perform service activities offshore or at offshore installations, will fall within the definition and will be required to report their emissions:
- Anchor handling tug supply
- Offshore tug/supply ship
- Crew/supply vessel
- Pipe carrier
- Platform supply ship
- Drilling ship
- Floating production storage and offloading (FPSO), oil
- Gas processing vessel
- Floating storage and offloading (FSO), gas
- FSO, oil
- Accommodation ship
- Diving support vessel
- Offshore construction vessel, jack up
- Offshore support vessel
- Pipe burying vessel
- Pipe layer
- Pipe layer crane vessel
- Production testing vessel
- Standby safety vessel
- Trenching support vessel
- Well stimulation vessel
The EU MRV regulation aims to monitor CO2 emissions and requires ship operators to monitor, report, and verify their emissions. The data collected through the EU MRV system contribute to accurately measuring emission levels and ensuring compliance with the climate targets set under the Fit for 55 package. Additionally, the data which is collected and verified is essential for calculating and reporting emissions covered under both EU ETS and FuelEU Maritime.
From reporting to compliance
The maritime industry became part of the EU Emission Trading System (EU ETS) on 1 January 2024, requiring companies to obtain and surrender allowances corresponding to their emissions. Starting 1 January 2027, offshore ships of 5,000 GT and above will also be comprised by the regulation, while ships between 4,000 and 5,000 GT will be evaluated by 31 December 2026 for potential inclusion at a later date. The affected vessels will be required to report their CO2 emissions and purchase allowances for their emissions. For a comprehensive review of the EU ETS framework, we refer to our previous articles addressing the topics of administering authorities and the responsible entity.
Offshore ships are currently not included in the FuelEU Maritime. However, the European Commission has indicated that they are considering whether this category of vessels should also be included in the future. For a more in-depth review of the FuelEU Maritime, we recommend taking a look at our previous newsletters and also our latest article on the topic at page 4 of this SO Update.
We strongly recommend that all affected entities in the offshore industry start preparations now to ensure full compliance with these upcoming regulations. Please do not hesitate to get in touch should you wish to discuss.