This work examines the substance of the regulation 2015/757 on the monitoring, reporting and verification (MRV) of carbon dioxide emissions from maritime transport of the EU and its basis by the leading question: which regulatory interventions and creative compliance are to be seen behind the MRV regulation and what business case is possible? Therefore, the regulatory intervention in its public and private interest’s dimension is investigated. Moreover, the recent situation of the shipping branch and the ships’ ownership situation (owner-operator relation) are explained. A critical reflection of the regulation and an investigation for creative compliance is given. Concluding, potential business cases and the potential of the market are outlined.
Since July 1st 2015, the European Union’s (EU) regulation 2015/757 on the monitoring, reporting and verification (MRV) of carbon dioxide emissions from maritime transport became effective. According to EU 2015/757 art. 8, from 1 January 2018, ships voyaging to a port of call under the jurisdiction of a member state are obligated to apply to the regulation 2015/757 and must have a MRV system to report their CO2 emissions. By August 31th 2017, all shipping companies voyaging within the EU area are obligated to prepare a monitoring plan for each of their ships (EU 2015/757 art. 6).
Table of Contents
1 Introduction
2 Theoretical Background
2.1 European Legislation
2.2 Regulatory Intervention
2.3 Creative Compliance
3 Essentials of the Marine Industry
3.1 The Branch’s Recent Situation
3.2 Ownership Situation
3.3 Environmental Impact
4 Investigation of the MRV Regulation
4.1 Scope and Purpose
4.2 Regulatory Intervention
4.3 Creative Compliance
5 Business Case based on a Regulation’s Monitoring Method
6 Conclusion and Critical Appraisal of the MRV Regulation
Research Objectives and Core Themes
This paper examines the substance and foundation of the EU 2015/757 regulation regarding the monitoring, reporting, and verification (MRV) of carbon dioxide emissions from maritime transport. The primary research goal is to identify which regulatory interventions and instances of creative compliance arise from this regulation and to evaluate the feasibility of potential business cases within the industry.
- Analysis of European legislation and regulatory intervention mechanisms.
- Examination of the current economic and ownership landscape within the global shipping industry.
- Assessment of the MRV regulation's scope, purpose, and potential for creative compliance.
- Development of a business case based on specific monitoring requirements and technologies.
- Critical appraisal of the regulation's effectiveness regarding greenhouse gas reductions.
Excerpt from the Book
4.1 Scope and Purpose
The regulation EU 2015/757 aims to integrate maritime shipping’s emissions into EU policy. The long-term goal is to reduce GHG emissions. The regulation requires ships equal to or larger than 5,000 gross tonnages (GT) to monitor, report and verify their CO2 emissions if they call at a member states’ port. Therefore, companies have to prepare a monitoring plan for each of their ships affected by the regulation.
Figure 1 depicts the stakeholder’s involvement in the MRV data processing. The shipping company’s fleet reports to headquarters. The emission report (ER) and monitoring plans (MP) are verified by the MRV verifier. The shipping company sends the ER to the flagstate and the EU Commission while the MRV verifier confirms data’s validity by providing the Document of Compliance (DoC).
Besides this, the companies have to monitor and report the following parameters on a per-voyage basis (EU 2015/757 art. 9.1 (a)-(g)):
• Amount of CO2 emitted
• Port of departure and arrival, including date and time
• Amount, type and emission factor for the fuels consumed
• Travelled distance
• Spent time on sea
• Type of cargo carried
• Transport work
Summary of Chapters
1 Introduction: Provides an overview of the EU regulation 2015/757 and outlines the research objective concerning regulatory interventions and business cases in the shipping sector.
2 Theoretical Background: Defines key concepts including European legislative structures, the theory of regulatory intervention, and the phenomenon of creative compliance.
3 Essentials of the Marine Industry: Analyzes the current economic environment, ship ownership models, and the environmental impact of global shipping.
4 Investigation of the MRV Regulation: Delves into the practical scope, the regulatory intent, and the loopholes that may allow for creative compliance by shipping entities.
5 Business Case based on a Regulation’s Monitoring Method: Evaluates the financial potential and investment requirements for implementing advanced flow meter technologies to meet MRV standards.
6 Conclusion and Critical Appraisal of the MRV Regulation: Summarizes the effectiveness of the regulation, highlights flaws regarding the scope of monitored gases, and suggests future improvements.
Keywords
MRV Regulation, EU 2015/757, Maritime Transport, CO2 Emissions, Greenhouse Gas, Regulatory Intervention, Creative Compliance, Shipping Industry, Monitoring Plan, Emission Report, Business Case, Sustainability, Maritime Policy, Environmental Impact, Fuel Consumption.
Frequently Asked Questions
What is the fundamental focus of this research paper?
The paper focuses on the EU regulation 2015/757 regarding the monitoring, reporting, and verification of CO2 emissions in maritime transport, analyzing its regulatory impact and business implications.
What are the primary thematic areas covered?
The core themes include European legislative frameworks, the economic situation of the shipping industry, the mechanics of regulatory intervention, and strategies for environmental compliance.
What is the central research question?
The central question asks what regulatory interventions and creative compliance strategies underlie the MRV regulation and what business opportunities might emerge from these requirements.
Which scientific methodology is applied?
The work utilizes a combination of theoretical analysis of regulatory and public choice theories, investigation of specific EU legal articles, and a case-based financial analysis for technological implementation.
What topics are discussed in the main body?
The main body covers the theoretical definition of regulation, the recent economic struggles of shipping companies, the specific monitoring requirements of the MRV, and an estimation of market potential for monitoring technology.
Which keywords define this publication?
Key terms include MRV Regulation, CO2 emissions, creative compliance, regulatory intervention, maritime shipping, and sustainability.
How does the ownership structure of ships affect the regulation?
The paper highlights that complex owner-operator relationships can lead to "split incentives," where stakeholders responsible for energy efficiency measures may not be the ones bearing the fuel costs, complicating compliance.
What specific business case is developed in the text?
The author develops a business case based on the installation of Coriolis mass flow meter technology, estimating an investment of approximately 100,000 USD per ship with a total market potential of 150 million USD.
What is the author's critique of the MRV regulation?
The author identifies a significant flaw in the regulation's limitation to CO2 only, ignoring other potent greenhouse gases, and criticizes the threshold and exceptions for certain ship types.
- Arbeit zitieren
- Florian Beyer (Autor:in), 2017, The MRV Regulation of the EU. Monitoring, Reporting and Verification of Carbon Dioxide Emissions from Maritime Transport, München, GRIN Verlag, https://www.grin.com/document/536576
