With the MRV deadline in June 2019, Eniram offers some ways in which digitalisation can be used to ease the process
What does EU MRV mean for the industry?
EU MRV is one of the first major environmental regulations in the marine industry and it applies to merchant ships larger than 5,000 GT. All shipowners and operators will have to monitor and report the verified amount of CO2 emitted by their vessels on voyages to, from and between EU ports.
Furthermore, the monitored emissions must be reported to the European Commission (EC), which will make reported and verified emissions along with related data on energy efficiency publicly available for the first monitoring period on 30 June, 2019.
Ships will also be required to carry a statement of compliance
confirming that data for the preceding year was
reported and verified.
EU MRV should be considered just the first step of regulation.
In recent years IMO member states have made significant progress towards addressing emissions from international shipping. Using data from the IMO CO2 data collection system, which is expected to record CO2 emissions data across the global fleet, the IMO plans to institute CO2 reduction objectives for the entire shipping sector. This change will introduce a whole new set of data gathering and reporting needs.
How can digitalisation help?
Automating as much of the MRV monitoring and reporting process as possible will be a leap forward not just in reducing the administrative burden, but also in avoiding red tape in monitoring and enforcing compliance.
At a minimum, any service for MRV reporting should simplify the process for users of entering data and forwarding it to verifiers and ultimately the EC. Ultimately, such a service would automate as many functions as possible in order to limit workload and remove the potential for human error. All information should be stored and available for checking.
What variables should be considered?
How can a digital reporting system improve performance?
Currently, regulation and reporting is largely viewed in terms of cost as at the very minimum, personnel must be assigned to gather and
process the required information. However, putting systems in place to automatically gather data for MRV reporting can also be seen as a first step towards digitalisation, allowing industry players to achieve new levels of performance.
Furthermore, the monitored emissions must be reported to the European Commission (EC), which will make reported and verified emissions along with related data on energy efficiency publicly available for the first monitoring period on June 30, 2019.
Transparency of information has historically been lacking in the marine industry. Requests for information can take days as they travel up and down the chain, even in emergency situations. With digitalisation, the information gathered for reporting – at a minimum, ship location, speed, and fuel use – is combined with real-time analytical tools to provide insight into what is happening on board at any given moment.
What other effects will be seen?
Digitalisation allows operators to benchmark performance across the fleet and take action where needed to optimise a vessel’s speed against its fuel consumption. This optimisation can lead to fuel consumption savings of as much as 10% while also reducing CO2 emissions.
Increased transparency also helps increase asset reliability. On a practical level this means that tasks like hull cleaning can be optimised based on actual vessel performance and maintenance can be carried out at the optimal time.
With the ability to monitor fuel consumption, speed, and real-time weather conditions against the charter party agreement for the entire duration of the voyage, charterers and owners are able to create better agreements based on actual data.