Proposal for a regulation amending Regulation (EU) 2015/757 in order to take appropriate account of the global data collection system for ship fuel oil consumption data

In “A European Green Deal”

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International maritime transport is responsible for around 2 - 3 % of global greenhouse gas emissions, according to a of the International Maritime Organization (IMO). According to the IMO scenarios, global shipping emissions could grow by up to 50 % by 2050, depending on future economic and energy developments. If left unchecked, these emissions risk undermining the goals of the Paris Agreement and cancelling out the emission reductions achieved in other sectors.

On 4 February 2019, the European Commission adopted a proposal to revise the EU system for monitoring, reporting and verification of CO2 emissions from maritime transport (Regulation (EU) 2015/757) in order align it with the global data collection system for the fuel oil consumption of ships introduced by the International Maritime Organisation (IMO). The EU regulation requires ships above 5 000 gross tons using European ports to monitor and report fuel consumption, CO2 emissions per voyage and on an annual basis, starting in 2018.

The IMO system, adopted in 2016 by the IMO’s Marine Environment Protection Committee (MEPC), requires ships above 5 000 gross tons to report consumption data for each type of fuel oil, hours underway and distance travelled. According to the IMO, these ships account for approximately 85 % of CO2 emissions from international shipping. The system entered into force on 1 March 2018, and reporting starts with the year 2019.

The proposed revision of Regulation (EU) 2015/757 aims to facilitate the simultaneous implementation of the two systems, while preserving the objectives of the current EU legislation, i.e. to keep the collection of robust and verified CO2 emissions data at individual ship level, to stimulate the uptake of energy efficiency solutions and inform future policy-making. By aligning some aspects of the two monitoring, reporting and verification (MRV) systems such as specific definitions or monitoring parameters, the proposal aims at reducing the administrative burden and associated costs for ships that have to report under both systems.

The  European  Economic  and  Social  Committee adopted an opinion on the proposal on 15  May 2019, while the Committee of the Regions decided not to issue an opinion.

The Commission presented the proposal to the Council working party on the environment on 28 February 2019 and to the Environment Council on 5 March 2019. The proposal was discussed by the Council working party on the environment on 9 April and 6 May 2019, and by the Environment Council of 26 June 2019. Coreper agreed the Council mandate for negotiations with the Parliament on 25 October 2019.

In the European Parliament, the ENVI Committee appointed Jutta Paulus (Greens/EFA, Germany) as rapporteur for the file. Her draft report of 24 January 2020 would oblige shipping companies to reduce their annual CO2 emissions per transport work by at least 40 % by 2030 and include maritime shipping in the EU Emissions Trading System (ETS). A Maritime Transport Decarbonisation Fund, financed by ETS revenues, would be established to improve the energy efficiency of ships and support investment in the decarbonisation of maritime transport. The Commission is requested to establish binding targets for Member States to ensure an adequate supply of shore-side electricity in ports. On 7 July 2020, the ENVI Committee adopted its report.

On 16 September 2020, the Parliament adopted amendments requiring shipping companies to reduce on a linear basis their annual average CO2 emissions relative to transport work, for all their ships, by at least 40 % by 2030, with penalties for non-compliance. In order to obtain data on transport work, the reporting of 'cargo carried' per voyage would remain mandatory. In addition, the amendments introduce environmental performance labelling of ships, and calls for inclusion of methane and other greenhouse gases besides CO2, and better supply of shore-side electricity in ports. The Commission would have to review the regulation in light of future IMO measures. The report would include maritime shipping under the EU ETS Directive from 2022. It also calls for an 'Ocean Fund' for the 2022-2030 period, financed by revenues from auctioning ETS allowances, which would be used to make ships more energy-efficient, to support investment in innovative technologies and infrastructure for decarbonising maritime transport, and to protect marine ecosystems impacted by climate change. The Commission would be required to assess any new global market-based emission reduction measures adopted by the IMO with respect to their ambition and environmental integrity.

The legislative proposal to review the EU ETS (see separate file) and extend it to maritime transport, part of the 'Fit for 55' package, amends Regulation (EU) 2015/757 with respect to reporting of aggregated emissions data at company level and monitoring plans for ships that would come under the scope of the EU ETS.

The file was referred back to the ENVI committee with a mandate to start trilogue negotiations. Despite both institutions having adopted their positions, trilogue negotiations have not started yet, but the trilogues on the closely related proposal to review the EU ETS started in July 2022 and were concluded in December 2022. A separate procedure for the amendments to Regulation (EU) 2015/757 was created (2021/0211B(COD)), and these amendments were approved by the Parliament and the Council in April 2023. The amended Regulation was published in the Official Journal on 16 May 2023.

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Author: Gregor Erbach, Members' Research Service, legislative-train@europarl.europa.eu

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As of 20/02/2024.