Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the monitoring, reporting and verification of carbon dioxide emissions from maritime transport and amending Regulation (EU) No 525/2013
Date: 2013-06-28
Institutions: European Commission
Subjects: EU emission allowance, International Maritime Organisation, climate change, energy saving, environmental monitoring, fuel, maritime transport, pollution from ships, public consultation, reduction of gas emissions













EUR-Lex - 52013PC0480 - EN











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52013PC0480

Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the monitoring, reporting and verification of carbon dioxide emissions from maritime transport and amending Regulation (EU) No 525/2013 /* COM/2013/0480 final - 2013/0224 (COD) */









EXPLANATORY
MEMORANDUM
1.           CONTEXT
OF THE PROPOSAL
The need to act on climate change and
greenhouse gas emissions from ships
In December 2010, Parties of United Nations
Framework Convention on Climate Change (UNFCCC) recognized that global warming
must not exceed the temperatures experienced before the industrial revolution
by more than 2˚ C[1].
This is vital if the negative consequences of human interference with the
climate system are to be limited. This long-term goal requires global
greenhouse gas emissions to be reduced by at least 50% below 1990 levels by
2050[2]. 
Developed countries should reduce their
emissions by 80 to 95% by 2050 compared to 1990 levels[3]. In the medium term, the EU has
committed to reduce its greenhouse gas emissions by 20% below 1990 levels by
2020, and by 30% if conditions are right. This commitment forms part of one of
the EU's five headline targets in the Europe 2020 Strategy.[4] Additionally, both the European
Council and the European Parliament have agreed that all sectors of the economy
should contribute to reducing emissions[5].
In the view of contributing to the EU 2020 Strategy, the 2011 Commission White Paper on Transport[6] states
that EU CO2 emissions from maritime
transport should be reduced by 40% (if feasible 50%) from 2005 levels by 2050.
In 2010 the total CO2 emissions
related to European maritime transport activities (including intra EU routes,
incoming voyages to the EU and outgoing voyages from the EU) were estimated to
be of the order of 180 Mt CO2. Despite of the introduction of
minimum energy efficiency standards for certain categories of new ships
("Energy Efficiency Design Index", EEDI) by the International
Maritime Organisation (IMO) in 2011[7],
the emissions are expected to increase. Main driver is the still expected increased
demand for maritime transport triggered by growth of world trade.
This projected growth is expected to happen
despite the availibility of operational measures and existing technologies to
reduce the specific energy consumption and CO2 emissions of ships by
up to 75% (according to IMO figures). A significant part of these measures can
be regarded as cost-effective as the reduced fuel costs ensure the pay-back of
any operational or investment costs. This contradiction can be explained by the
existence of market barriers for the uptake of such technologies and
operational measures such as the lack of reliable information on fuel
efficiency of ships or of technologies for retrofitting ships, lack of access
to finance for investments into ship efficiency and split incentives as ship
owners would not benefit from their investments into ship efficiency as fuel
bills are paid by operators. 
Mandate for action at EU level
The projected increase of CO2
emissions from shipping is not in line with the EU objectives, leading to
negative impacts on climate change. Furthermore, at the EU level, international
maritime transport remains the only transport mode not included in the EU's
greenhouse gas emissions reduction commitment which requires additional efforts
from all other sectors. 
The Council and the Parliament recalled an
earlier commitment to take action in the Climate and Energy Package adopted on
23 April 2009: "in the event that no international agreement which
includes international maritime emissions in its reduction targets through the
International Maritime Organisation has been approved by Member States or no
such agreement through the UNFCCC has been approved by the Community by 31
December 2011, the Commission should make a proposal to include international
maritime emissions in the Community reduction commitment, with the aim of the
proposed act entering into force by 2013. Such a proposal should minimise any
negative impact on the Community’s competitiveness while taking into account
the potential environmental benefits."[8]

This deadline has passed without sufficient
international action as the EEDI, despite its utility is not expected alone to
deliver absolute emission reductions compared to base years if forecasted
growth in traffic will be realised. Therefore, the Commission launched
preparatory activities in view of addressing greenhouse gas emissions from international
maritime transport. 
Need for a staged approach to reduce greenhouse
gas emisisons from maritime transport
Today, the precise amount of CO2
and other greenhouse gas emissions of EU-related maritime transport is not
known due to the lack of monitoring and reporting of such emissions. The impact
assessment and stakeholder consultation (see section 2) identified that a
robust system for monitoring, reporting and verification (MRV) of greenhouse
gas emissions from maritime transport is a prerequisite for any market-based
measure or efficiency standard, whether applied at EU level or globally.
Furthermore, a robust MRV system should
contribute to the removal of market barriers, in particular related to the lack
of information on ship efficiency. Based on the results of the impact
assessment, it is expected that by introducing MRV, greenhouse gas emisisons
reductions of up to 2% compared to business-as-usual and aggregated net costs
reduction of up to € 1.2 billion by 2030 could be achieved.
By introducing MRV as a first step, more
time can be dedicated to the discussion and decision making on emission
reduction targets, market-based measures and efficiency standards to achieve
these reductions at minimum cost. This is particularly relevant for discussions
at global level in the IMO. 
Given the Commission's clear preference for
measures taken at global level, the EU MRV should serve as example for the
implementation of a global MRV with the aim to speed up the international
discussions. In this context, relevant submissions to the IMO will be made when
appropriate. Once a global system is decided, the proposed Regulation should be
amended to align the EU MRV with the global system.
2.           RESULTS
OF CONSULTATIONS WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS
Stakeholder consultation
In order to review the policy options
mentioned in the second IMO greenhouse gas study 2009[9] and in the 2009 CE Delft study[10], a working group (WG6) was
established under the European Climate Change Program II (ECCP). This group has
also allowed formal technical stakeholder consultations and provided input for
the external support, e.g. by narrowing down the policy options. Three two-day
meetings with more than 100 participants from national administrations, from EU
and international shipping associations and from other associations and NGOs
were organized in 2011. The minutes, the background paper and the presentation
of these meetings are available on the Commission’s website for public
information[11].
Furthermore, the Commission established a
High Level Platform, bringing together high level experts in the maritime
transport sector, to enable a strategic discussion directly with Vice President
Kallas and Commissioner Hedegaard. These meetings took place on the 3 February
2011, 28 June 2011 and 7 November 2011. 
An online public consultation was held from
19 January to 12 April 2012, i.e. 12 weeks. A press release announced the
launch of this public consultation. The public consultation was carried out
using the “General principles and minimum standards for consultation of
interested parties by the Commission”.
The consultation confirms that a global
agreement in the IMO is perceived as the best long term option to achieve greenhouse
gas emission reductions of the shipping sector. In the event of a European
measure, there is general agreement that there should be a level playing field
for all ships using European ports. It is also a largely shared view that any
market-based measure or efficiency standard needs to be accompanied by
transparent and robust monitoring of emissions. This monitoring should be
established with the view of avoiding undue administrative burdens and ensure
accurate reporting results. More results are published on the Commission's
website[12].
Finally, another stakeholder meeting with
120 participants from industry, NGOs, Member States and third countries took
place on 5 December 2012 focussing on the design of a MRV system in the EU.
This meeting confirmed the need for MRV as no robust data on CO2
emission are available today. Several initiatives for monitoring and reporting
of fuel consumption, CO2 emissions and energy efficiency already
exist in the shipping sector. The participants widely agreed that MRV should be
based on information required by international Conventions and already
available on board of ships to reduce the administrative burden. The
presentations and conclusions are published on the Commission's website[13].
Impact assessment
The Impact Assessment analyses and compares
several policy options for market-based measures and a MRV-only option. The
main findings are the following:
–                        
The key market barriers to the implementation of
cost-effective abatement measures are:
(i) lack of reliable information on fuel
efficiency of ships or of technologies available for retrofitting ships, 
(ii) lack of access to finance for investments
into ship efficiency
(iii) split incentives as ship owners would not
benefit from their investments into ship efficiency as fuel bills, due to the
structure of ship operations, are often paid by operators. 
The removal of these market barriers will be
key for the success of any particular measure. 
–                        
Significant emission reduction potentials exist for
shipping through a range of technical and operational measures, which mainly
aim to improve the energy efficiency of ships. The fuel cost savings associated
with most of these technical or operational measures outweigh the expected
costs.
–                        
All policy options analysed offer net benefits
in terms of environmental (reduction of CO2 and other emissions),
economic (net cost savings for the maritime transport sector) and social
impacts (less health problems due to lower SOX and particle
emissions, creation of jobs).
–                        
Two types of compensation funds – a
contribution-based fund with given carbon price and a target-based fund with
defined reduction target and indirect price setting – and a maritime emission
trading system (ETS) could offer the highest benefits in terms of emission
reductions and cost savings.
They are expected to best address the market
barriers and result in emission reductions of around 10% by 2030 compared to
2005. Net cost savings for the shipping sector could be substantial in case
market barriers could be completely removed (and may be up to € 12 billion in
2030 and in average up to € 5 billion per year). In particular there are
substantial saving potentials by implementing existing fuel efficiency
technologies at negative costs in this sector, and coupled with operational
measures will further reduce CO2 emissions.
–                        
The MRV only option would lead to more limited
emission reductions estimated at up to 2% in 2030 (compared to the baseline)
leading to cost reductions up to around € 1.2 billion in 2030 (in average
about € 900 million per year). This will target the removal of market barriers
related to the lack of information thanks to the generation of information on
fuel consumption and raising awareness at management level for potential fuel
cost savings. Costs of implementation are estimated at around € 26 million per
year (when excluding ship below 5000 GT from the scope). Overall, the relative
benefit/cost ratio of this option is very high.
The full results are presented in the
impact assessment accompanying the proposal.
Summary of the proposed action
The main objective of this Regulation is to
establish a European MRV system for CO2 emissions from ships as
first step of a staged approach to reduce these emissions. In order to reduce
the related administrative costs while ensuring robust results, simple and lean
MRV requirements are proposed. The approach is therefore designed to make use
of already existing data on board of ships to the fullest extent. 
Accordingly the operational features of the
proposed MRV system would be as follows:
–                        
Focus on CO2 as predominant GHG
emitted by ships and on other climate relevant information such as efficiency
information to address market barriers for the uptake of cost-efficient
mitigation measures and to align MRV with IMO discussion on efficiency standards
for existing ships
–                        
Calculate annual CO2 emissions based
on fuel consumption and fuel type and energy efficiency using available data
from log books, noon reports and bunker delivery notes
–                        
Use existing structures and bodies of the
maritime sector, in particular recognised organisations to verify emission
reports and to issue documents for compliance
–                        
Exclude small emitters (ships below 5000 GT)
which represent about 40% of the fleet, but only 10% of the total emissions
In principle, the
MRV system could also cover emissions of other greenhouse gases, climate
forcers and air pollutants such as SOX and NOX. Such an
integrated approach could deliver a broad range of relevant environmental
information while making use of synergy effects to the benefits of the shipping
sector and public authorities. However, the proposed lean MRV approach based on
existing documents and equipment on board of ships could not be used to measure
other emissions than CO2. Furthermore, the measurement equipment required
for other emissions than CO2 cannot be considered as sufficiently
reliable and commercially available for use at sea. Therefore, at this stage,
the proposed MRV system should be implemented for CO2 emissions
only. It would be appropriate to review this scope at later stage. 
As regards the
geographical scope for monitoring, the following routes will in
principle be covered in a non-discriminatory manner for all ships regardless
their flag:
–                        
intra-EU voyages
–                        
voyages from the last non-EU port to the first
EU port of call (incoming voyages)
–                        
voyages from an EU port to the next non-EU port
of call (outgoing voyages) 
The compliance cycle will be based on a
standard approach. It is proposed to use a lean approach and to assign a
limited number of tasks to the Commission which shall be assisted by the European
Maritime Safety Agency (EMSA). Tasks related to the check of monitoring plans,
emission reports, communication with ship owners and operators and the issuance
of documents of compliance would be ensured by accredited third party
verifiers. Such bodies which may include recognised bodies already have
extensive experience and play an important role for maritime safety.
Enforcement of the MRV obligations would be ensured by Member States, more
concretely by Port State Authorities making use of the existing flag State and
port State control mechanisms and of data published by the Commission. 
The proposed MRV system could be converted
into a global system with only limited adjustments as it uses internationally required
documents and existing structures such as flag State and port State authorities
and classification societies. 
In order to facilitate the implementation
of the proposed MRV system, more specific rules for verification and the
accreditation of verifiers are needed. In addition, the description of the four
monitoring methods and the determination of other climate relevant information
such as efficiency indicators provided in Annex I and II of the proposed
Regulation should be revised based on the scientific evidence and the
development of international standards. For these purposes, the Commission
should be empowered to adopt respective delegated acts.
To simplify the preparation of monitoring
plans, reporting and verification of emissions and other climate relevant
information, electronic templates shall be used. These templates shall be
provided and adopted by the Commission based on implementing acts.
The steps of the MRV process are
illustrated by the following figure.
3.           LEGAL ELEMENTS OF THE PROPOSAL
Legal basis
The legal basis for the legislative
proposal is Article 192(1) of the TFEU. The proposal pursues a legitimate
objective within the scope of Article 191(1) of the Treaty on the Functioning
of the European Union, namely, combating climate change. The purpose of the
legislative proposal is to ensure that greenhouse gas emissions from ships are
monitored and reported, and therefore to improve the availability of
information for policy and decision making in the context of the Union’s climate change commitments and provide incentives for mitigation efforts. This
objective cannot be achieved by less restrictive means than the legislative
proposal.
Subsidiarity principle
For Union action to be justified, the
subsidiarity principle must be respected.
(a)                   
Transnational nature of the problem (necessity
test)
The transnational nature of climate change
and of maritime transport are important elements in determining whether Union
action is necessary. National action alone would not suffice to meet the
objectives set by the White Paper on Transport. It is therefore necessary for
the Union to create an enabling framework to meet international and Union
requirements, ensuring harmonised monitoring, reporting and verification of greenhouse
gas emisisons from maritime transport.
(b)                   
Effectiveness test (added value)
By reason of its effectiveness, taking
action at Union level would produce clear benefits compared to action at Member State level. As the overarching climate change commitments are made at the Union
level including the emissions reduction target for the maritime transport
sector for 2050 as established by the White Paper on Transport, it is effective
to also develop the required rules for MRV at this level. Moreover, this legal
framework will ensure effectiveness by employing harmonised MRV for ship voyages between ports of different Member States which
account for about 90% of port calls in EU Member
States. Furthermore, acting at the EU level could avoid competitive distortion
in the internal market by ensuring equal environmental constraints on ships
calling into EU ports.
Proportionality principle
The proposal complies with the
proportionality principle for the following reasons:
It does not go beyond what is necessary to achieve the objective to collect reliable data of greenhouse gas
emissions from ships. Furthermore, the methodology for MRV of the proposed
Regulation is based on information already today available on board of ships.
No additional equipment will be required. 
The proportionality of the proposed measure
is also ensured by focussing on CO2 emissions representing about 98%
of the greenhouse gas emissions of the shipping sector and on large ships above
5000 Gross Tons (GT). This excludes almost half of the about 19000 ships above
300 GT have called in EU ports in 2010[14]
while still covering around 90% of the total emissions from ships.
4.           BUDGETARY
IMPLICATION 
As specified in
the financial statement accompanying this Regulation, the Regulation will be
implemented using the existing budget and will not have an impact on the
multi-annual financial framework. Limited IT development costs for the
necessary adjustment of an existing tool hosted and operated by EMSA of around
0.5 M€ are expected. EMSA's involvement depends on the
respective ancillary task of the agency to be activated and approved by the
EMSA Board.
5.           OPTIONAL
ELEMENTS 
Review/revision clause
The proposal
includes a provision allowing the Commission to review this Regulation in the
context of future international developments, in particular in case of the
introduction of a global MRV system through the IMO. In such an event the
proposed Regulation should be reviewed and if appropriate amended to align the
provisions on MRV with the international system.
2013/0224 (COD)
Proposal for a
REGULATION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL
on the monitoring, reporting and
verification of carbon dioxide emissions from maritime transport and amending
Regulation (EU) No 525/2013
(Text with EEA relevance)
THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 192(1) thereof,
Having regard to the proposal from the
European Commission,
After transmission of the draft legislative
act to the national Parliaments,
Having regard to the opinion of the
European Economic and Social Committee[15],

Having regard to the opinion of the
Committee of the Regions[16],

Acting in accordance with the ordinary
legislative procedure,
Whereas:
(1)       The Climate and Energy
Package[17] calling for contributions of all sectors of
the economy to achieving these emission reductions, including international
maritime shipping, provides a clear mandate: "…in the event that no
international agreement which includes international maritime emissions in its
reduction targets through the International Maritime Organisation has been
approved by Member States or no such agreement through the UNFCCC has been
approved by the Community by 31 December 2011, the Commission should make a
proposal to include international maritime emissions in the Community reduction
commitment, with the aim of the proposed act entering into force by 2013. Such
a proposal should minimise any negative impact on the Community’s
competitiveness while taking into account the potential environmental
benefits."
(2)       In
July 2011, the International Maritime Organisation (IMO) adopted technical and
operational measures, in particular the Energy
Efficiency Design Index (EEDI) for new ships and the Ship Energy Efficiency
Management Plan (SEEMP), which will
bring improvement in terms of reducing the expected increase in greenhouse gas
emissions, but alone cannot lead to the necessary absolute emission reductions
of greenhouse gases from international shipping to keep efforts in line with
the global objective of limiting increases in global temperatures to 2°C.
(3)       According to data provided
by the IMO, the specific energy consumption and CO2 emissions of ships
could be reduced by up to 75% by applying operational measures and implementing
existing technologies; a significant part of those measures can be regarded as
cost-effective as the reduced fuel costs ensure the pay-back of any operational
or investment costs.
(4)       In order to reduce carbon
dioxide emissions from shipping at Union level the best possible option remains
setting up a system for monitoring, reporting and verification (MRV) of CO2
emissions based on the fuel consumption of ships as a first step of a staged
approach for the inclusion of maritime transport emissions in the Union's greenhouse gas reduction commitment.
(5)       The adoption of measures
to reduce greenhouse gas emissions and fuel consumption is hampered by the
existence of market barriers such as lack of reliable information on fuel
efficiency of ships or of technologies available for retrofitting ships, lack
of access to finance for investments into ship efficiency and split incentives
as ship owners would not benefit from their investments into ship efficiency
when fuel bills are paid by operators.
(6)       The results of the
stakeholder consultation and discussions with international partners indicate
that a staged approach for the inclusion of maritime transport emissions in the
Union's greenhouse gas reduction commitment should be applied with the
implementation of a robust MRV system for CO2 emissions from
maritime transport as a first step and the pricing of these emissions at a
later stage. This approach facilitates making significant progress at
international level on the agreement of greenhouse gas emission reduction
targets and further measures to achieve these reductions at minimum cost.
(7)       The introduction of a Union
MRV system is expected to lead to emission reductions of up to 2% compared to
business-as-usual and aggregated net costs reductions of up to 1.2 billion EUR by
2030 as it could contribute to the removal of market barriers, in particular those
related to the lack of information about ship efficiency. This reduction of
transport costs should facilitate international trade. Furthermore, a robust
MRV system is a prerequisite for any market-based measure or efficiency
standard, whether applied at Union level or globally. It also provides reliable
data to set precise emission reduction targets and to assess the progress of
maritime transport's contribution towards achieving a low carbon economy.
(8)       All intra-Union voyages,
all incoming voyages from the last non-Union port to the first Union port of
call and all outgoing voyages from a Union port to the next non-Union port of
call should be considered relevant for purposes of monitoring. CO2
emissions in Union ports including when ships are at berth or move within a
port, should be covered as well, in particular as specific measures for their
reduction or avoidance are available. These rules should be applied in a
non-discriminatory manner to all ships regardless of their flag.
(9)       The proposed MRV system
should take the form of a Regulation on account of the complex and highly
technical nature of provisions introduced, the need for uniform rules
applicable throughout the Union to reflect the international nature of maritime
transport with numerous ships being expected to call at ports in different
Member States, and to facilitate implementation throughout the Union.
(10)     A robust ship-specific Union
MRV system should be based on the calculation of emissions from fuel consumed on
voyages from and to Union ports as fuel sales data could not provide appropriately
accurate estimates for the fuel consumption within this specific scope due to
the large tank capacities of ships.
(11)     The Union MRV system should
also cover other climate relevant information allowing for the determination of
ships' efficiency or further analyse the drivers for the development of
emissions. This scope also aligns the Union MRV system with international
initiatives to introduce efficiency standards for existing ships, also covering
operational measures, and contributes to the removal of market barriers related
to the lack of information.
(12)     In order to minimise the
administrative burden for ship owners and operators, in particular for small and
medium sized enterprises, and to optimise the benefits-costs-ratio of the MRV
system without jeopardising the objective to cover a widely predominant share
of greenhouse gas emissions from maritime transport, the rules for MRV should
only apply to large emitters. A threshold of 5000 gross tonnage (GT) has been
selected after detailed objective analysis of sizes and emissions of ships going
to and coming from Union ports. Ships above 5000 GT account for around 55% of
the number of ships calling into Union ports and represent around 90% of the related
emissions. This non-discriminatory threshold would ensure that that the most
relevant emitters are covered. A lower threshold would result in higher
administrative burden while a higher threshold would limit the coverage of
emissions and thus the environmental effectiveness of the system.
(13)     To further reduce the
administrative effort for ship owners and operators, the monitoring rules
should focus on CO2 as the by far most relevant greenhouse gas emitted
by maritime transport which contributes to up to 98% of the total greenhouse
gas emissions of this sector. 
(14)     The rules should take into
account existing requirements and data already available on board of ships;
therefore, ship owners should be given the opportunity to select one out of the
following four monitoring methods: the use of Bunker Fuel Delivery Notes,
bunker fuel tank monitoring, flow meters for applicable combustion processes or
direct emission measurements. A ship specific monitoring plan should document
the choice made and provide further details on the application of the selected
method.
(15)     Any company with
responsibility for an entire reporting period over a ship performing shipping
activities should be considered responsible for all monitoring and reporting
requirements arising in relation to this reporting period, including the
submission of a satisfactorily verified emissions report. In case of change of
ownership, the new owner will only be responsible
for the monitoring and reporting obligations related to the reporting period
where the change of ownership has taken place. To facilitate the fulfilment of
these obligations the new owner should receive a copy of the latest monitoring
plan, and document of compliance if applicable. Change of ownership should also
lead to the modification of the monitoring plan in order to allow new ship
owner to make their own choices in relation to the monitoring methodology.
(16)     Other greenhouse gases,
climate forcers or air pollutants should not be covered by the Union MRV system
at this stage to avoid requirements to install not sufficiently reliable and
commercially available measurement equipment, which could impede the
implementation of the Union MRV system.
(17)     To minimise the
administrative burden for ship owners and operators, reporting and publication
of reported information should be organised on an annual basis. By restricting
the publication of emissions, fuel consumption and efficiency-related
information to annual averages and aggregated figures, confidentiality issues
should be addressed. The data reported to the Commission should be integrated
with statistics to the extent that these data are relevant for the development,
production and dissemination of European statistics in accordance with
Commission Decision 2012/504/EU of 17 September 2012 on Eurostat[18].
(18)     Verification by accredited verifiers
should ensure that monitoring plans and emission reports are correct and in
compliance with the requirements defined by this Regulation. As an important
element to simplify verification, verifiers should check data credibility by comparing
reported data with estimated data based on ship tracking data and
characteristics. Such estimates could be provided by the Commission. Verifiers
should be independent and competent persons or legal entities and should be
accredited by national accreditation bodies established pursuant to Regulation
(EC) No 765/2008 of the European Parliament and of the Council of 9 July 2008
setting out the requirements for accreditation and market surveillance relating
to the marketing of products and repealing Regulation (EEC) No 339/93[19].
(19)     A document of compliance
issued by a verifier should be kept on board of ships to demonstrate compliance
with the obligations for monitoring, reporting and verification. Verifiers
should inform the Commission on the issuance of such documents.
(20)     Based on experience from
similar tasks related to maritime safety, the European Maritime Safety Agency
(EMSA) should support the Commission by carrying out certain tasks.
(21)     Non compliance with the
provisions of this Regulation should result in the application of sanctions. Enforcement
of the obligations related to the MRV system should be based on existing
instruments, namely those instituted in application of Directive 2009/21/EC of
the European Parliament and of the Council on compliance with flag State
requirements[20]
and Directive 2009/16/EC of the European Parliament and of the Council of 23 April
2009 on port State control[21],
and on information on the issuance of documents of compliance. The document
confirming compliance of the ship with the monitoring and reporting obligations
should be added by the Commission to the list of certificates and documents referred
to in Article 13(1) of Directive 2009/16/EC.
(22)     Directive 2009/16/EC
provides for the detention of ships in the absence of certificates which have
to be carried on board. In the case of ships having failed to comply with
monitoring and reporting obligations for more than one reporting period, it is
nonetheless appropriate to provide for the possibility of expelling. This
should be applied in such a way as to allow the situation to be rectified
within a reasonable period of time.
(23)     Regulation (EU) No 525/2013
of the European Parliament and of the Council of 21 May 2013 on a mechanism for
monitoring and reporting greenhouse gas emissions and for reporting other
information at national and Union level relevant to climate change[22] should be amended to establish
requirements for the monitoring and reporting of CO2 emissions from
maritime transport by Member States pursuant to this Regulation.
(24)     The Union MRV system should
serve as a model for the implementation of a global MRV system. A global MRV
system is preferable as it could be regarded as more effective due to the
broader scope. In this context, the Commission should share relevant
information on the implementation of this Regulation with the IMO and other relevant international bodies on a
regular basis and relevant submissions should be made to the IMO. Where an
agreement on a global MRV system is reached, the Commission should review the
Union MRV system in view of aligning it to the global system.
(25)     In order to make use of the
best available practices and scientific evidence, the power to adopt acts in
accordance with Article 290 of the Treaty should be delegated to the Commission
in respect of reviewing certain technical aspects of monitoring and reporting
of CO2 emissions from ships and of further specifying rules for the
verification of emission reports and the accreditation of verifiers. It is of
particular importance that the Commission carries out appropriate consultations
during its preparatory work, including at expert level. The Commission, when
preparing and drawing-up delegated acts, should ensure a simultaneous, timely
and appropriate transmission of relevant documents to the European Parliament
and Council.
(26)     In order to ensure uniform
conditions for the use of automated systems and standard electronic templates for
coherent reporting of emissions and other climate-relevant information to the
Commission and involved States implementing powers should be conferred on the
Commission. Those necessary implementing powers should be exercised in accordance with
Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16
February 2011 laying down the rules and general principles concerning
mechanisms for control by the Member States of the Commission's exercise of
implementing powers[23].
(27)     The objective of the
proposed action, namely to monitor, report and verify CO2 emissions
from ships as first step of a staged approach to reduce these emissions cannot
be sufficiently achieved by the Member States acting individually, due to the
international nature of maritime transport and can therefore, by reason of
scale and effects of the action, be better achieved at Union level. The Union may adopt measures, in accordance with the principle of subsidiarity as set out in
Article 5 of the Treaty. In accordance with the principle of proportionality,
as set out in that Article, this Regulation does not go beyond what is
necessary in order to achieve those objectives. 
(28)     The rules establishing the
MRV system should comply with the provisions of Directive 95/46/EC of the
European Parliament and of the Council of 24 October 1995 on the protection of
individuals with regard to the processing of personal data and on the free
movement of such data[24]
and with Regulation (EC) No 45/2001 of the European Parliament and of the
Council of 18 December 2000 on the protection of individuals with regard to the
processing of personal data by the Community institutions and bodies and of the
free movement of such data[25].
(29)     This Regulation should
enter into force on 1 July 2015 to ensure that the Member States and relevant
stakeholders have sufficient time to take the necessary measures for the
effective application of this Regulation before the first reporting period
starts on 1 January 2018.
HAVE ADOPTED THIS REGULATION:
CHAPTER I
GENERAL
PROVISIONS
Article 1
Subject
matter
This Regulation lays down rules for the
accurate monitoring, reporting and verification of carbon dioxide (CO2)
emissions and other climate relevant information from ships arriving at, within
or departing from ports under the jurisdiction of a Member State in order to
promote the reduction of CO2 emissions from maritime transport in a
cost effective manner.
Article 2
Scope
1.           This Regulation applies to
ships above 5000 gross tons in respect of emissions released during their voyages
from the last port of call to a port under the jurisdiction of a Member State
and from a port under the jurisdiction of a Member State to their next port of
call, as well as within ports under the jurisdiction of a Member State.
2.           This Regulation does not apply
to warships, naval auxiliaries, fish catching or processing ships, wooden ships
of a primitive build, ships not propelled by mechanical means and government
ships used for non-commercial purposes.
Article 3
Definitions
For the purposes of this Regulation the
following definitions apply:
(a)                   
'emissions' means the release of CO2 into
the atmosphere by ships as provided for in Article 2;
(b)                   
'port of call' means the port where a ship stops
to load or unload cargo or to embark or disembark passengers, excluding stops
for the sole purpose of refuelling, obtaining fresh supplies and/or relieving
the crew;
(c)                   
'company' means the owner of a ship as provided
for in Article 2 or any other person, such as the manager or the bareboat
charterer, who has assumed the responsibility from the ship-owner for its
operations;
(d)                   
'gross tonnage' (GT) means the metric gross
tonnage calculated in accordance with the tonnage measurement regulations
contained in Annex 1 to the International Convention on Tonnage Measurement of
Ships, 1969;
(e)                   
'verifier' means a legal entity carrying out
verification activities that is accredited by a national accreditation body
pursuant to Regulation (EC) No 765/2008 of the European Parliament and of the
Council[26] and this Regulation;
(f)                     
‘verification’ means the activities carried out by
a verifier to assess the conformity of the documents transmitted by the company
with the requirements under this Regulation;
(g)                   
'other climate-relevant information' means
information related to the consumption of fuels, transport work and energy
efficiency of ships which allow for analysing emission trends and assessing
ships' performances;
(h)                   
‘emission factor’ means the average emission
rate of a greenhouse gas relative to the activity data of a source stream
assuming complete oxidation for combustion and complete conversion for all
other chemical reactions;
(i)                     
‘uncertainty’ means a parameter, associated with
the result of the determination of a quantity, that characterises the
dispersion of the values that could reasonably be attributed to the particular
quantity, including the effects of systematic as well as of random factors,
expressed in per cent, and describes a confidence interval around the mean
value comprising 95 % of inferred values taking into account any asymmetry of
the distribution of values; 
(j)                     
‘conservative’ means that a set of assumptions
is defined in order to ensure that no under-estimation of annual emissions or
over-estimation of distances or amounts of cargo carried occurs; 
(k)                   
‘tonnes of CO2’ means metric tonnes
of CO2;
(l)                     
‘reporting period’ means one calendar year
during which emissions have to be monitored and reported.
CHAPTER II
MONITORING AND REPORTING 
Section 1
Principles
and methods for monitoring and Reporting
Article 4
Common
principles for monitoring and reporting
1.           Companies shall monitor and report for every ship the amount
and type of fuel consumed during a calendar year within each port under the
jurisdiction of a Member State and for each voyage arriving to and departing
from a port located under the jurisdiction of a Member State in accordance with
paragraphs 2 to 6.
2.           Monitoring and reporting
shall be complete and cover all emissions from the combustion of fuels. Companies
shall apply appropriate measures to prevent any data gaps within the reporting
period.
3.           Monitoring and reporting
shall be consistent and comparable over time. Companies
shall use the same monitoring methodologies and data sets subject to
changes and derogations approved by the verifier. 
4.           Companies shall obtain,
record, compile, analyse and document monitoring data, including assumptions,
references, emission factors and activity data, in a transparent manner that
enables the reproduction of the determination of emissions by the verifier.
5.           Companies shall ensure
that emission determination is neither systematically nor knowingly inaccurate.
They shall identify and reduce any source of inaccuracies.
6.           Companies shall enable
reasonable assurance of the integrity of emission data to be monitored and
reported.
Article 5
Methods for monitoring and
reporting emissions on maritime transport
For the purposes of Article 4(1), (2) and
(3), companies shall determine their emissions and other climate relevant
information for each of their ships above 5000 GT in accordance with any of the
methods set out in Annex I.
SECTION 2 
MONITORING
PLAN
Article 6
Content and submission of the
monitoring plan
1.           By 31 August 2017, companies
shall submit to the verifiers a monitoring plan indicating the method chosen to
monitor and report emissions and other climate-relevant information for each of
their ships above 5000 GT. 
2.           By way of derogation from
paragraph 1, for ships falling under the scope of this Regulation for the first
time after 1 January 2018, the company shall submit a monitoring plan to the
verifier without undue delay and no later than two months after their first call
in a port under the jurisdiction of a Member State.
3.           The monitoring plan
referred to in paragraph 1 shall consist of a complete and transparent
documentation of the monitoring methodology of a specific ship and shall
contain at least the following elements:
(a)         
the identification and type of the ship
including the name of the ship, its International Maritime Organisation (IMO)
registration number, its port of registry or home port and the name of the ship
owner;
(b)         
the name of the company and the address, telephone,
fax and e-mail details for a contact person;
(c)         
a description of the emission sources on board
of the ship such as main engines, auxiliary engines, boilers and inert gas
generators and the fuel types used;
(d)         
a description of procedures, systems and responsibilities
used to update the completeness of the list of emission sources over the
monitoring year for the purpose of ensuring the completeness of monitoring and
reporting of the emissions of the ship;
(e)         
a description of the procedures used to monitor
the completeness of the list of voyages;
(f)           
a description of the procedures for monitoring
fuel consumption of the ship, including:
(i)      the chosen method as set out in Annex
I for calculating the fuel consumption of each emission source including a
description of the measurement equipment used, as applicable;
(ii)      procedures for the measurement of
fuel uplifts and fuel in tanks, a description of the measuring instruments
involved and the procedures for recording, retrieving, transmitting and storing
information regarding measurements, as applicable;
(iii)     the chosen method for the
determination of density, where applicable;
(iv)     a procedure to ensure that the total
uncertainty of fuel measurements is consistent with the requirements of this
regulation, where possible referring to national laws, clauses in customer
contracts or fuel supplier accuracy standards;
(g)         
single emission factors used for each fuel type,
or in the case of alternative fuels, the methodologies for determining the
emission factors, including the methodology for sampling, methods of analysis,
a description of the laboratories used (and confirmed ISO 17025 accreditation
where relevant);
(h)         
a description of the procedures used for
determining activity data per voyage, including:
(i)      the procedures, responsibilities and
data sources for determining and recording the distance per voyage made; 
(ii)      the procedures, responsibilities,
formulae and data sources for determining and recording the cargo carried and
the number of passengers as applicable;
(iii)     the procedures, responsibilities,
formulae and data sources for determining and recording the time spent at sea
between the port of departure and the port of arrival;
(i)           
a description of the method to be used to
determine surrogate data for closing data gaps;
(j)           
the date of the latest modification to the monitoring
plan.
4.           Companies shall use
standardised monitoring plans based on templates. Technical rules establishing
the templates for the monitoring plans referred to in paragraph 1 shall be
determined by means of implementing acts. Those implementing acts shall be
adopted by the Commission in accordance with the procedure referred to in
Article 25(2) of this Regulation.
Article 7
Modifications of the monitoring
plan
Companies shall regularly check if the ship's monitoring plan reflects the
nature and functioning of the ship and whether the monitoring methodology can
be improved. 
A company shall
modify the monitoring plan in any of the following situations:
(a)                   
where a change of ownership of ships occurs;
(b)                   
where new emissions occur due to new emission
sources or due to the use of new fuels not yet contained in the monitoring
plan;
(c)                   
where the change in availability of data, due to
the use of new measuring instrument types, sampling methods or analysis
methods, or for other reasons, leads to higher accuracy in the determination of
emissions;
(d)                   
where data resulting from the previously applied
monitoring methodology has been found incorrect;
(e)                   
where the monitoring plan is not in conformity
with the requirements of this Regulation and the verifiers requests the company
to modify it.
Companies shall notify any proposals for
modification of the monitoring plan to the verifiers without undue delay.
Any significant modification of the
monitoring plan shall be subject to assessment by the verifier.
Section 3
MONITORING
OF EMISSIONS AND OTHER RELEVANT INFORMATION
Article 8
Monitoring of activities within a
reporting period 
From 1 January 2018, companies shall, based on the monitoring plan approved in accordance with
Article 13(1), monitor emissions for each ship
on a per-voyage and an annual basis by applying the appropriate method among
those set out in part B of Annex I and by calculating emissions in accordance with
part A of Annex I 
Article 9
Monitoring on a per-voyage basis
Based on the monitoring
plan approved in accordance to Article 13(1), for each ship and for each voyage arriving to and departing from a port under a Member
State's jurisdiction, companies shall monitor in
accordance with part A of Annex I and Annex II, the following information:
(a)                   
port of departure and port of arrival including
the date and hour of departure and arrival;
(b)                   
amount and emission factor for each type of fuel
consumed in total and differentiated between fuel used inside and outside
emission control areas;
(c)                   
CO2 emitted;
(d)                   
distance travelled;
(e)                   
time spent at sea;
(f)                     
cargo carried;
(g)                   
transport work.
Article 10
Monitoring on a yearly basis
Based on the monitoring plan approved in
accordance to Article 13(1), for each ship and for each calendar year, the company
shall monitor in accordance with part A of Annex I and Annex II the following
parameters:
(a)                   
amount and emission factor for each type of fuel
consumed in total and differentiated between fuel used inside and outside
emission control areas;
(b)                   
total CO2 emitted;
(c)                   
aggregated CO2 emissions from all
voyages between ports under a Member State's jurisdiction;
(d)                   
aggregated CO2 emissions from all
voyages which departed from ports under a Member State's jurisdiction;
(e)                   
aggregated CO2 emissions from all
voyages to ports under a Member State's jurisdiction;
(f)                     
CO2 emissions which occurred within
ports under a Member State's jurisdiction at berth;
(g)                   
total distance travelled;
(h)                   
total time spent at sea;
(i)                     
total transport work;
(j)                     
average energy efficiency.
Section 4
REPORTING 
Article 11
Content of the emission report
1.           From 2019, by 30 April of
each year, companies shall submit to the Commission and to the authorities of
the flag States concerned, an emission report concerning the emissions and other climate-relevant information during the entire
reporting period for each ship under their responsibility, which has
been verified as satisfactory by a verifier in accordance with the requirements
referred to in Article 14.
2.           Where
there is a change in ownership of ships, the new company shall ensure
that each ship under its responsibility complies with the requirements of this
Regulation in relation to the entire reporting period where it takes
responsibility for the ship concerned.
3.           Companies shall include in the emission report
referred to in paragraph 1 the following information:
(a)         
 data identifying the ship and the company,
including:
(i)      name of the ship,
(ii)      IMO registration number,
(iii)     port of registry or home port,
(iv)     technical efficiency of the ship (the
Energy Efficiency Design Index (EEDI) or the Estimated Index Value (EIV) in
accordance with IMO Resolution MEPC.215 (63), where applicable)
(v)     name of the ship owner,
(vi)     address of the ship owner and his
principal place of business,
(vii)    name of the company (if not the ship
owner),
(viii)   address of the company (if not the ship
owner) and his principal place of business,
(ix)     address, telephone, fax and e-mail
details for a contact person;
(b)         
 information on the monitoring method used and
the related level of uncertainty;
(c)         
 the results from annual monitoring of the
parameters in accordance with Article 10.
Article 12
Format of the emission report
1.           The emission report
referred to in Article 11 shall be submitted using automated systems and complete
data exchange formats, including electronic templates.
2.           Technical rules
establishing the data exchange format including electronic templates referred
to in paragraph 1 shall be determined by means of implementing acts. Those
implementing acts shall be adopted by the Commission in accordance with the procedure
referred to in Article 25(2) of this Regulation.
CHAPTER III 
VERIFICATION
AND ACCREDITATION
Article 13
Scope
of verification activities and verification report
3.           The verifier shall assess
the conformity of the monitoring plan referred to in Article 6 with the
requirements laid down in Articles 6 and 7. Where the assessment contains
recommendations necessary to be incorporated within a monitoring plan, the
respective company shall revise its monitoring plan before the reporting period
starts.
4.           The verifier shall assess
the conformity of the emission report with the requirements laid down in Articles
8 to 11 and Annex I and II.
5.           In particular the verifier
shall ensure that the emissions and other climate-relevant information included
in the emission report have been determined in accordance with Articles 8, 9
and 10 and the monitoring plan referred to in Article 6. The verifier shall
also ensure that the emissions and other climate-relevant information declared
in the reports are consistent with data calculated from other sources in
accordance with Annexes I and II. 
6.           Where the assessment concludes
that, to the best knowledge of the verifier, the emission report is free from
material misstatements and errors, the verifier shall issue a verification
report. The verification report shall specify all issues relevant to the work
carried out by the verifier.
7.           Where the assessments
concludes that the emission report includes material misstatements, errors,
inconsistencies or does not meet the requirements of Articles 11 and 14 and
Annex I, the verifier shall inform the company thereof on a timely basis and
ask it to resubmit a reviewed emission report. The company shall correct any
communicated non-conformities or inconsistencies so as to allow the verification
process to be finished in a timely manner. The verifier shall report in its
verification report whether the non-conformities have been resolved by the
company during verification.
Article 14
General obligations and principles for
the verifiers
1.           The verifier shall be
independent from a company or operator of the ship concerned and carry out the
activities required under this regulation in the public interest. For that
purpose, the verifier and any part of the same legal entity shall not be a company
or ship operator, the owner of a company or owned by them nor shall the
verifier have relations with the company that could affect its independence and
impartiality.
2.           When considering the verification
of the emission report referred to in Article 11 and of the monitoring procedures
applied by the company, the verifier shall assess the reliability, credibility
and accuracy of the monitoring systems and of the reported data and information
relating to emissions, in particular:
(d)         
the assigning of fuel consumption to voyages
within the scope of this Regulation;
(e)         
the reported fuel consumption data and related
measurements and calculations;
(f)           
the choice and the employment of emission
factors;
(g)         
the calculations leading to the determination of
the overall emissions;
(h)         
the calculations leading to the determination of
the energy efficiency.
3.           The verifier shall only
consider reports submitted in accordance with Article 11 if reliable and
credible data and information allow the emissions to be determined with a high
degree of certainty and provided that the following are ensured:
(a)         
the reported data is coherent in view of
estimated data based on ship tracking data and characteristics such as the
installed engine power;
(b)         
the reported data is free of inconsistencies, in
particular when comparing the total volume of fuel
purchased annually by each ship and the aggregate fuel
consumption during voyages which fall within the scope of this Regulation;
(c)         
the collection of the data has been carried out
in accordance with the applicable rules;
(d)         
the relevant records of the ship are complete
and consistent.
Article 15
Verification procedures 
1.           The verifier shall
identify potential risks related to the monitoring and reporting process by
comparing reported emissions with estimated data based on ship tracking data
and characteristics such as the installed engine power. Where significant
deviations are found, the verifier shall carry out further analyses.
2.           The verifier shall
identify potential risks related to the different calculation steps by
reviewing all data sources and methodologies used.
3.           The verifier shall take
into consideration any effective risk control methods applied by the company to
reduce levels of uncertainty, considering the accuracy of the monitoring
methods used.
4.           The company shall provide
the verifier with any additional information that enables it to carry out the
verification procedures. The verifier may conduct spot-checks during the
verification process to determine the reliability of reported data and
information.
5.           The Commission shall be
empowered to adopt delegated acts in accordance with Article 24 in order to
further specify the rules for the verification activities referred to in this
Regulation and the methods of accreditation of verifiers. These delegated acts
shall be based on the principles for verification provided for in Article 14
and on relevant internationally accepted standards.
Article 16
Accreditation of verifiers
1.           A verifier assessing
monitoring plans and emission reports and issuing verification and compliance
documents referred to in Articles 13 and 17 shall be accredited for activities
under the scope of the present Regulation by a national accreditation body
pursuant to Regulation (EC) No 765/2008.
2.           Where no specific
provisions concerning the accreditation of verifiers are laid in this
Regulation, the relevant provisions of Regulation No EC 765/2008 shall apply.
3.           The Commission shall be
empowered to adopt delegated acts in accordance with Article 24, in order to
further specify the methods of accreditation of verifiers.
CHAPTER IV
COMPLIANCE
AND PUBLICATION OF INFORMATION
Article 17
Issuance of a document of
compliance 
1.           Where the emission report
referred to in Article 11 fulfils the requirements of Articles 11, to 15 and
those laid down in Annexes I and II, on the basis of a verification report, the
verifier shall deliver a document of compliance for the ship concerned.
2.           The document of compliance
referred to in paragraph 1 shall include the following information:
(a)         
the identity of the ship (name, IMO registration
number and port of registry or home port);
(b)         
name and address and principal place of business
of the owner of the ship;
(c)         
the identity of the verifier;
(d)         
the date of issue of the document of compliance (the
reporting period it refers to and its period of validity).
3.           Documents of compliance shall
be considered valid documents for a period of 18 months after the
end of the reporting period.
4.           Without delay, the verifier shall inform the Commission and the
authority of the flag State on the issuance of any document of compliance and
transmit the information referred to in paragraph 2 using automated systems and
complete data exchange formats, including electronic templates established by
the Commission in accordance with the procedure established in the present
Regulation. 
5.           Technical rules
establishing the data exchange format including electronic templates referred
to in paragraph 4 shall be determined by means of implementing acts. Those
implementing acts shall be adopted by the Commission in accordance with the
procedure referred to in Article 25(2) of this Regulation.
Article 18
Obligation to carry a valid
document of compliance on board
From 30 June 2019 ships arriving at, within or departing from a port
under the jurisdiction of a Member State shall carry on board a valid document
certifying the ship's compliance with the reporting and monitoring obligations for
the concerned reporting period, issued in accordance with Article 17.
Article 19
Compliance with monitoring and
reporting obligations and inspections
1.           Based on the information
published in accordance with Article 21(1), each Member State shall ensure the
compliance with the monitoring and reporting requirements set out in Articles 8
to 12 by ships flying its flag.
2.           Each Member State shall
ensure that any inspection of a ship in a port under its jurisdiction includes
verification that the document of compliance referred to in Article 18 is
carried on board.
3.           Without prejudice to
paragraph 2 of this Article and based on the information published in
accordance with Article 21, for each ship in failure to comply with Article 21(2)
(j) and (k) which entered a port under jurisdiction of a Member State, the Member
State shall verify that the document of compliance referred to in Article 18 is
carried on board.
Article 20
Penalties, information exchange and
expulsion order
1.           Member States shall lay
down a system of penalties for failure to comply with the monitoring and
reporting requirements set out in Articles 8 to 12 and shall take all the
measures necessary to ensure that those penalties are applied. The penalties
provided for shall be no less stringent than those foreseen under national
legislation on greenhouse gas emissions in case of non-compliance with reporting
obligations by operators and be effective, proportionate and dissuasive. Member
States shall notify these provisions to the Commission by 1 July 2017, and
shall notify any subsequent amendments affecting these provisions to the
Commission without delay.
2.           Member States shall
establish an effective exchange of information and effective cooperation
between their national authorities ensuring compliance with the monitoring and
reporting requirements or, where applicable, their authority entrusted with the
sanctioning procedures. National sanctioning procedures launched by any Members State shall be notified to the Commission, the European Maritime Safety Agency
(EMSA), to the other Member States and to the flag State concerned.
3.           For ships having failed to
comply with the monitoring and reporting requirements for more than one
reporting period, the national State port authority may issue an expulsion order which shall be notified to
the Commission, EMSA, the other Member States and the flag State concerned. As
a result of the issuing of such an expulsion order, every Member State shall
refuse entry of this ship into any of its ports until the company fulfils its
monitoring and reporting requirements in accordance with Articles 8 to 12,
confirmed by the notification of a valid document of compliance to the national
port State authority which issued the expulsion order.
Article 21
Publication of information 
1.           By 30 June each year, the
Commission shall make publicly available the emissions reported in accordance
with Article 11 and information on the company's compliance with the monitoring
and reporting requirements set out in Articles 11 and 17.
2.           The publication referred
to in paragraph 1 shall include the following information:
(a)         
the identity of the ship (name, IMO registration
number and port of registry or home port);
(b)         
the identity of the ship owner (name and address
of owner and his principal place of business);
(c)         
technical efficiency of the ship (EEDI or EIV
where applicable);
(d)         
annual CO2 emissions;
(e)         
annual total fuel consumption for voyages falling
within the scope of this Regulation;
(f)           
annual average fuel consumption and greenhouse
gas emissions per distance travelled of voyages falling within the scope of
this Regulation;
(g)         
annual average fuel consumption and greenhouse
gas emissions per distance travelled and cargo carried on voyages falling
within the scope of this Regulation;
(h)         
annual total time spent at sea in voyages falling
within the scope of this Regulation;
(i)           
methodology for monitoring applied; 
(j)           
the date of issue and the expiry date of the
document of compliance; 
(k)         
the identity of the verifier having approved the
emission report. 
3.           The Commission shall publish
an annual report on emissions and other
climate-relevant information from maritime transport.
4.           EMSA shall assist the
Commission in its work to comply with Articles 11, 12, 17 and 21 of this
Regulation, in accordance with Regulation (EC) No 1406/2002 of the European
Parliament and of the Council[27].
CHAPTER V
INTERNATIONAL COOPERATION
Article 22
International cooperation 
1.           The Commission shall
inform the IMO and other relevant international bodies on a regular basis of
the implementation of this Regulation with a view to facilitate the development
of international rules within the IMO for the monitoring, reporting and
verification of greenhouse gas emissions from maritime transport.
2.           The Commission shall
maintain technical exchange with third countries on the implementation of this
Regulation, in particular the further development of monitoring methods, the organisation
of reporting and the verification of emission reports.
3.           Where an international agreement
on global measures to reduce greenhouse gas emissions from maritime transport is
reached, the Commission shall review this Regulation and may, if appropriate,
propose amendments to this Regulation.
CHAPTER VI
DELEGATED
AND IMPLEMENTING POWERS AND FINAL PROVISIONS
Article 23
Delegation of powers
The power to adopt delegated acts in order
to supplement and amend the provisions of Annexes I and II to take into account
up-to-date scientific evidence available, as well as the relevant data
available on board of ships and the relevant international rules and internationally
accepted standards, to identify the most accurate and efficient methods for
monitoring of emissions, and to improve the accuracy of the information
requested related to the monitoring and reporting of emissions is conferred on
the Commission subject to the conditions laid down under Article 24 to the
extent it concerns non-essential elements of this Regulation.
Article 24
Exercise of delegation
1.           The power to adopt
delegated acts referred to in Articles 15, 16 and 23 shall
be conferred on the Commission for a period of five
years from 1 July 2015.
2.           The
delegation of power referred to in Article 23 may be
revoked at any time by the European Parliament or by the Council. A decision of
revocation shall put an end to the delegation of the power specified in that
decision. It shall take effect the day following the publication of the
decision in the Official Journal of the European Union or at a later
date specified therein. It shall not affect the validity of any delegated acts
already in force.
3.           As soon as it adopts a
delegated act, the Commission shall notify it simultaneously to the European Parliament
and to the Council.
4.           A delegated act adopted
pursuant to Article 23 shall enter into force only if no objection has been
expressed either by the European Parliament or the Council within a period of two
months of notification of that act to the European Parliament and the Council
or if, before the expiry of that period, the European Parliament and the
Council have both informed the Commission that they will not object. That
period shall be extended by two months at the initiative of the European Parliament
or the Council.
Article 25
Implementing acts
1.           The Commission shall be
assisted by the Committee established by Article 8 of Decision 93/389/EC. That Committee
shall be a committee within the meaning of Regulation (EU) N° 182/2011.
2.           Where reference is made to
this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.
Article 26
Amendments to Regulation (EU) No 525/2013
Regulation (EU) 525/2013
is amended as follows: 
1.           In Article 1 of Regulation
525/2013[28],
the following point (h) shall be added:
"(h) monitoring and reporting of greenhouse
gas emissions from marine ships pursuant to Articles 9 and 10 of Regulation
(EU) No XXXX/XXXX."
2.           The following 'Article 21a’
shall be inserted:
Article 21a
                                   Reporting emissions from maritime transport
(1)         
"Member States shall report to the
Commission by 15 January each year ('year X') for the year X-2, the CO2
emissions from maritime transport pursuant to Articles 9 and 10 of Regulation
(EU) No XXXX/XXXX.
(2)         
The Commission shall be empowered to adopt delegated
acts in accordance with [Article 25 of this Regulation] to specify the
requirements for the monitoring and reporting of CO2 emissions from
maritime transport pursuant to Articles 9 and 10 of Regulation (EU) No XXXX/XXXX
and taking into account, where applicable, relevant decisions adopted by the
bodies of the UNFCCC and the Kyoto Protocol or agreements deriving from them or
succeeding them or decisions adopted in the context of the International
Maritime Organisation.
(3)         
The Commission shall adopt implementing acts to
set out the structure, format and process for the Member states' submission of
CO2 emissions from maritime transport pursuant to Articles 9 and 10
of Regulation (EU) No XXXX/XXXX. These implementing acts shall be adopted in
accordance with the examination procedure referred to in [Article 26(2)]."
3.           In Article 25 (2), (3) and
(5) the following reference shall be inserted:
"21a"
Article 27
Entry into force
This Regulation shall enter into force on 1 July 2015.
This Regulation shall be binding
in its entirety and directly applicable in all Member States.
Done at Brussels, 
For the European Parliament                       For
the Council
The President                                                 The
President
ANNEX I
Methods for
monitoring and reporting greenhouse gas emissions and other climate relevant
information 
A.        CALCULATIon
of FUEL CONSUMPTION (Article 9)
For the purposes of calculating fuel
consumption companies shall respect the following formula:
Fuel consumption x Emission factor
Fuel consumption shall include fuel
consumed by main engines, auxiliary engines, boilers and inert gas generators.
Fuel consumption within ports at berth
shall be calculated separately.
In principle, default values for emission
factors of fuels shall be used unless the company decides using data on fuel
quality set out in the Bunker Fuel Delivery Notes and used for demonstrating
compliance with applicable regulations of sulphur emissions. 
Default emission factors shall be based on
latest available IPCC values. They can be derived from Annex VI to Commission
Regulation (EU) No°601/2012 on the monitoring and reporting of greenhouse gas
emissions pursuant to Directive 2003/87/EC of the European Parliament and of
the Council[29].
Appropriate emission factors shall be
applied in respect of biofuels and alternative non-fossil fuel fuels.
B.         METHODS FOR DETERMINING
EMISSIONS 
The company shall define in the monitoring
plan which monitoring methodology is used to calculate fuel consumption for
each ship type under its responsibility and ensure that once it has been
chosen, is consistently applied.
In selecting a monitoring methodology, the
improvements from greater accuracy shall be balanced against the additional
costs. 
Actual fuel consumption for each voyage
shall be used and be calculated using one of the following methods:
(a)                   
Bunker Fuel Delivery Note (BDN) and periodic
stocktakes of fuel tanks;
(b)                   
Bunker fuel tank monitoring on board;
(c)                   
Flow meters for applicable combustion processes;
(d)                   
Direct emissions measurements.
1.           Method A:BDN (Bunker
Delivery Notes) and periodic stock-takes of fuel tanks 
This method is based on the quantity and type
of fuel as defined on the BDN combined with periodic stock-takes of fuel tanks
based on tank readings. The fuel at the beginning of the period, plus
deliveries, minus fuel available at the end of the period and de-bunkered fuel
between the beginning of the period and the end of the period together
constitute the fuel consumed over the period.
The period includes time between two port calls
or time within a port. For the fuel used during a period, the fuel type and the
sulphur content need to be specified.
This approach shall not be used when BDN are
not available on board of ships, especially when cargo is used as a fuel, for
example, liquefied natural gas (LNG) boil-off.
The BDN is mandated under existing MARPOL Annex
VI Regulations and relevant records are retained on board for 3 years after the
delivery of the bunker fuel and be readily available. The periodic stock-take
of fuel tanks on-board is based on fuel tank readings. It uses tank tables
relevant to each fuel tank to determine the volume at the time of the fuel tank
reading. The uncertainty associated with the BDN shall be specified in the
monitoring plan referred to in Article 6. Fuel tank readings shall be carried
out by appropriate methods such as automated systems, soundings and dip tapes.
The method for tank sounding and uncertainty associated shall be specified in
the monitoring plan referred to in Article 6.
Where the amount of fuel uplift or the amount
of fuel remaining in the tanks is determined in units of volume, expressed in
litres, the company shall convert that amount from volume to mass by using
actual density values. The company shall determine the actual density by using
one of the following: 
(a)         
on-board measurement systems; 
(a)         
the density measured by the fuel supplier at
fuel uplift and recorded on the fuel invoice or delivery note. 
The actual density shall be expressed in
kg/litre and determined for the applicable temperature for a specific
measurement. In cases for which actual density values are not available, a
standard density factor for the relevant fuel type shall be applied upon
approval by the verifier.
2.           Method B: Bunker fuel tank
monitoring on-board
This method is based on fuel tank readings for
all fuel tanks on-board. The tank readings shall occur daily when the ship is
at sea and each time the ship is bunkering or de-bunkering.
The cumulative variations of the fuel tank
level between two readings constitute the fuel consumed over the period.
The period means time between two port calls or
time within a port. For the fuel used during a period, the fuel type and the
sulphur content need to be specified.
Fuel tank readings shall be carried out by
appropriate methods such as automated systems, soundings and dip tapes. The
method for tank sounding and uncertainty associated shall be specified in the
monitoring plan referred to in Article 6.
Where the amount of fuel uplift or the amount
of fuel remaining in the tanks is determined in units of volume, expressed in
litres, the company shall convert that amount from volume to mass by using
actual density values. The company shall determine the actual density by using
one of the following:
(a)         
on-board measurement systems; 
(b)         
the density measured by the fuel supplier at
fuel uplift and recorded on the fuel invoice or delivery note. 
The actual density shall be expressed in
kg/litre and determined for the applicable temperature for a specific
measurement. In cases for which actual density values are not available, a
standard density factor for the relevant fuel type shall be applied upon
approval by the verifier.
3.           Method C: Flow meters for
applicable combustion processes
This method is based on measured fuel flows
on-board. The data from all flow meters linked to relevant emission sources
shall be combined to determine all fuel consumption for a specific period.
The period means time between two port calls or
time within a port. For the fuel used during a period, the fuel type and the
sulphur content need to be monitored.
The calibration methods applied and the
uncertainty associated with flow meters used shall be specified in the
monitoring plan referred to in Article 6.
Where the amount of fuel consumed is determined
in units of volume, expressed in litres, the company shall convert that amount
from volume to mass by using actual density values. The company shall determine
the actual density by using one of the following:
(a)         
on-board measurement systems;
(b)         
the density measured by the fuel supplier at
fuel uplift and recorded on the fuel invoice or delivery note. 
The actual density shall be expressed in
kg/litre and determined for the applicable temperature for a specific
measurement. In cases for which actual density values are not available, a
standard density factor for the relevant fuel type shall be applied upon
approval by the verifier.
4.           Method D: Direct emissions
measurement
The direct emissions measurements may be used
for voyages within the scope of this regulation and for emissions occurring in
ports located in a Member State's jurisdiction. CO2 emitted shall
include CO2 emitted by main engines, auxiliary engines, boilers and
inert gas generators. For ships on which reporting is based on this method, the
fuel consumption shall be calculated using the measured CO2
emissions and the applicable emission factor of the relevant fuels.
This method is based on the determination of CO2
emission flows in exhaust gas stacks (funnels) by multiplying the CO2
concentration of the exhaust gas with the exhaust gas flow.
The calibration methods applied and the
uncertainty associated with the devices used shall be specified in the
monitoring plan referred to in Article 6.
ANNEX II
Monitoring of other
climate-relevant information
A.- Monitoring on a per voyage basis
(Article 9)
For the purposes of monitoring other
climate-relevant information on a per-voyage basis (Article 9), companies shall
respect the following rules:
The date and hour of departure and arrival
shall be considered using Greenwich Mean Time (GMT). The time spent at sea
shall be calculated based on port departure and arrival information and shall
exlude ankering.
The distance travelled can be the distance
of the most direct route between the port of departure and the port of arrival
or the real distance travelled. In the event of the use of the distance of the
most direct route between the port of departure and the port of arrival, conservative
correction factor should be taken into account to ensure that the distance
travelled is not significantly underestimated. The monitoring plan referred to
in Article 6 shall specify which distance calculation is used and, if
necessary, the correction factor used. The distance travelled shall be
expressed in nautical-miles.
For passenger ships, the number of
passengers shall be used to express cargo carried. For all other categories of ships,
the amount of cargo carried shall be expressed as metric tonnes and cubic
meters of cargo.
Transport work shall be determined by
multiplying the distance travelled with the amount of cargo carried.
B. Monitoring on a yearly basis
(Article10)
For the purposes of monitoring other
climate-relevant information on a yearly basis, companies shall respect the
following rules:
The values to be
monitored according to Article 10 should be determined by aggregation of the
respective per voyage data.
Average energy efficiency shall be
monitored by using at least four indicators, fuel consumption per distance, the
fuel consumption per transport work, the CO2 emissions per distance
and the CO2 emissions per transport work, which shall be calculated
as follows:
Fuel consumption per distance = total annual
fuel consumption / total distance travelled
Fuel consumption per transport work = total
annual fuel consumption / total transport work
CO2 emissions per distance = total
annual CO2 emissions / total distance travelled
CO2 emissions per transport work
= total annual CO2 emissions / total transport work
LEGISLATIVE FINANCIAL STATEMENT
1.           FRAMEWORK OF THE PROPOSAL/INITIATIVE 
              1.1.    Title of the proposal/initiative 
              1.2.    Policy
area(s) concerned in the ABM/ABB structure
              1.3.    Nature
of the proposal/initiative 
              1.4.    Objectives

              1.5.    Grounds
for the proposal/initiative 
              1.6.    Duration
and financial impact 
              1.7.    Management
mode(s) envisaged 
2.           MANAGEMENT MEASURES
              2.1.    Monitoring
and reporting rules 
              2.2.    Management
and control system 
              2.3.    Measures
to prevent fraud and irregularities 
3.           ESTIMATED FINANCIAL IMPACT OF THE
PROPOSAL/INITIATIVE 
              3.1.    Heading(s)
of the multiannual financial framework and expenditure budget line(s) affected 
              3.2.    Estimated
impact on expenditure 
              3.2.1. Summary of
estimated impact on expenditure 
              3.2.2. Estimated impact
on operational appropriations 
              3.2.3. Estimated impact
on appropriations of an administrative nature
              3.2.4. Compatibility
with the current multiannual financial framework
              3.2.5. Third-party contributions

              3.3.    Estimated impact on revenue
LEGISLATIVE FINANCIAL STATEMENT
1.           FRAMEWORK OF THE PROPOSAL/INITIATIVE 
1.1.        Title of the
proposal/initiative 
Regulation of the European Parliament and the Council for the
monitoring, reporting and verification of carbon dioxide emissions from
maritime transport.
1.2.        Policy area(s) concerned
in the ABM/ABB structure[30]
Policy area 34 = ‘Climate action’
1.3.        Nature of the
proposal/initiative 
X The proposal/initiative relates to a new
action 
¨ The proposal/initiative relates to a new action following a pilot
project/preparatory action[31]

¨ The proposal/initiative relates to the extension of an existing
action 
¨ The proposal/initiative relates to an action redirected towards
a new action 
1.4.        Objectives
1.4.1.     The Commission's
multiannual strategic objective(s) targeted by the proposal/initiative 
Reduce greenhouse gas emissions by at least 20% compared to 1990
levels or by 30%, if the conditions are right; increase the share of renewable energy sources in our final energy
consumption to 20%; and a 20% increase in energy
efficiency
1.4.2.     Specific objective(s) and
ABM/ABB activity(ies) concerned 
Specific objective No. 1
Contribute, through climate actions at EU level, to the long-term
objective of stabilising greenhouse gas concentrations in the atmosphere at a
level that would prevent dangerous anthropogenic interference with the climate
system.
ABM/ABB activity(ies) concerned
ABB code 34 02: Climate action at EU and international level
Specific objective No. 2
To pursue ambitious climate action policies at international level
to achieve the long-term objective of stabilising greenhouse gas concentrations
in the atmosphere at a level that would prevent dangerous anthropogenic
interference with the climate system.
ABM/ABB activity(ies) concerned
ABB code 34 02: Climate action at EU and international level
1.4.3.     Expected result(s) and
impact
Specify the effects
which the proposal/initiative should have on the beneficiaries/groups targeted.
The implementation of a system for monitoring, reporting and
verification of greenhouse gas emissions from ships would provide data on these
emissions which are currently only estimated in the absence of appropriate
reporting requirements. It can be expected that monitoring and reporting such
emissions and indicators on fuel consumption and ship efficiency would raise
awareness within the maritime transport sector on related fuel costs and
improvements potentials.
According to the Impact Assessment, emission reductions and fuel
savings are expected to be up to 2% compared to business as usual. This
translates into net costs savings of up to € 1.2 billion annual net savings for
the sector in 2030 due to reduced fuel bills.
1.4.4.     Indicators of results and
impact 
Specify the
indicators for monitoring implementation of the proposal/initiative.
Number and percentage of ships that are monitoring and reporting
their emissions in line with the regulation compared to the number of ships calling
into EU ports
Annual CO2 emissions from maritime transport within the
EU scope, measured on board and based on fuel consumption
1.5.        Grounds for the
proposal/initiative 
1.5.1.     Requirement(s) to be met in
the short or long term 
Today, the precise amount of CO2 and other GHG emissions
of EU-related maritime transport is not known due to the lack of monitoring and
reporting of such emissions. The impact assessment and stakeholder consultation
identified that a robust system for monitoring, reporting and verification
(MRV) of greenhouse gas emissions from maritime transport is a prerequisite for
any market-based measure, whether applied at EU level or globally.
By introducing MRV as a first step, more time can be dedicated to
the discussion and decision making on emission reduction targets and
market-based measures to achieve these reductions at minimum cost. This is
particularly relevant for discussions at global level in the IMO. Furthermore,
a robust MRV system should contribute to the removal of market barriers, in
particular related to the lack of information on ship efficiency. 
For further explanations please consult the explanatory memorandum
of the proposal
1.5.2.     Added value of EU
involvement
As the overarching climate change commitments are made at the Union
level including the emissions reduction target for the maritime transport
sector for 2050 as established by the White Paper on Transport, it is effective
to also develop the required rules for MRV at this level. Moreover, this legal
framework will ensure effectiveness by employing harmonised MRV for ship voyages between ports of different Member States which
account for about 90% of port calls in EU Member
States. Furthermore, acting at the EU level could avoid competitive distortion
in the internal market by ensuring equal environmental constraints on ships
calling into EU ports.
1.5.3.     Lessons learned from
similar experiences in the past
Measures to reduce greenhouse gas emissions in other sectors,
notably the EU-ETS as world's largest cap and trade system, demonstrate the
need for robust rules for monitoring, reporting and verification of emissions.
The aim is to ensure a common understanding on the definition of one tonne of
CO2 emitted by an installation or by an operator.
1.5.4.     Compatibility and possible
synergy with other appropriate instruments
Although the proposal MRV rules for the maritime transport sector
take full account of the specific aspects of this transport mode, the basic
monitoring and reporting approach is comparable to the MRV used within the
scope of the EU-ETS.
This should allow the comparison of efforts for emission reductions
by different sectors and transport modes.
1.6.        Duration and financial
impact 
¨ Proposal/initiative of limited
duration 
–     
¨  Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY 
–     
¨  Financial impact from YYYY to YYYY 
X Proposal/initiative of unlimited
duration
–     
Implementation with a start-up period from 2016
to 2017,
–     
followed by full-scale operation by 2018.
1.7.        Management mode(s)
envisaged[32]
X Centralised direct management by the
Commission 
¨ Centralised indirect management with
the delegation of implementation tasks to:
–     
¨  executive agencies 
–     
¨  bodies set up by the Communities[33]

–     
¨  national public-sector bodies/bodies with public-service mission 
–     
¨  persons entrusted with the implementation of specific actions
pursuant to Title V of the Treaty on European Union and identified in the
relevant basic act within the meaning of Article 49 of the Financial Regulation

¨ Shared management with the Member States 
¨ Decentralised management with third countries 
¨ Joint management with international organisations (to be specified)
If more than one
management mode is indicated, please provide details in the
"Comments" section.
Comments 
The
measures required for implementation of the proposed MRV system with budgetary
implications are exclusively related to the development of IT tools, more
precisely the extension of existing tools operated by the European Maritime
Safety Agency, including administrative expenses. The budget for this one-off
project will be provided by the Commission, under DG CLIMA's budget line
34 02 01.
EMSA's
possible involvement depends on the respective ancillary task of the agency to
be activated by the EMSA Board.
Due to its
highly automated character, it is expected that the operation of the tool could
later be absorbed by existing staff in EMSA.
2.           MANAGEMENT MEASURES 
2.1.        Monitoring and reporting
rules 
The Commission will regularly meet the consultants developing the
necessary IT tool (extension of existing THETIS system operated by EMSA) to
monitor the progress of the work.
2.2.        Management and control
system 
2.2.1.     Risk(s) identified 
There are no budgetary risks connected with the proposal that would
require measures beyond regular EU budgetary control framework.
2.2.2.     Control method(s) envisaged

No specific control methods are required, standard mechanisms shall
apply where appropriate.
2.2.3.     Costs and benefits of
controls and probable non-compliance rate
The envisaged standard mechanisms are not expected to lead to
additional costs. With such standard controls, no non-compliance is expected.
2.3.        Measures to prevent fraud
and irregularities 
Specify existing or
envisaged prevention and protection measures.
No specific measures are needed. The normal framework for contracts
and procurement will apply.
3.           ESTIMATED FINANCIAL IMPACT OF THE
PROPOSAL/INITIATIVE 
3.1.        Heading(s) of the
multiannual financial framework and expenditure budget line(s) affected 
·      Existing budget lines 
In order of
multiannual financial framework headings and budget lines.
 Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution 
 Number [Description………………………...……….] || Diff./non-diff. ([34])   || from EFTA countries[35]   || from candidate countries[36]   || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation 
 2 || 34 02 01 [Reduction of EU greenhouse gas emissions] || Diff || NO || NO || NO || NO 
·      New budget lines requested 
In order of multiannual financial framework
headings and budget lines.
 Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution 
 Number [Heading……………………………………..] || Diff./non-diff. || from EFTA countries || from candidate countries || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation 
   || [XX.YY.YY.YY]   ||   || YES/NO || YES/NO || YES/NO || YES/NO 
3.2.        Estimated impact on
expenditure 
[This part must be
completed on the spreadsheet on budget data of an administrative nature (second
document in the annex to this financial statement) to be uploaded to CISNET for
interdepartmental consultation purposes.
3.2.1.     Summary of estimated impact
on expenditure 
EUR million (to three decimal places)
 Heading of multiannual financial framework: || 2 || Preservation and management of natural resources 
 DG: CLIMA ||   ||   || 2016 || 2017 || Year N+2 || Year N+3 || Enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL 
  Operational appropriations ||   ||   ||   ||   ||   ||   ||   ||   
 34 02 01 || Commitments || (1) || 0.500 ||   ||   ||   ||   ||   ||   || 0.500 
 Payments || (2) || 0.200 || 0.300 ||   ||   ||   ||   ||   || 0.500 
 Number of budget line || Commitments || (1a) ||   ||   ||   ||   ||   ||   ||   ||   
 Payments || (2a) ||   ||   ||   ||   ||   ||   ||   ||   
 Appropriations of an administrative nature financed from the envelope of specific programmes[37] ||   ||   ||   ||   ||   ||   ||   ||   
 Number of budget line ||   || (3) ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL appropriations for DG CLIMA || Commitments || =1+1a +3 || 0.500 ||   ||   ||   ||   ||   ||   || 0.500 
 Payments || =2+2a +3 || 0.200 || 0.300 ||   ||   ||   ||   ||   || 0.500 
  TOTAL operational appropriations || Commitments || (4) || 0.500 ||   ||   ||   ||   ||   ||   || 0.500 
 Payments || (5) || 0.200 || 0.300 ||   ||   ||   ||   ||   || 0.500 
  TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL appropriations under HEADING 2 of the multiannual financial framework || Commitments || =4+ 6 || 0.500 ||   ||   ||   ||   ||   ||   || 0.500 
 Payments || =5+ 6 || 0.200 || 0.300 ||   ||   ||   ||   ||   || 0.500 
If more than one heading is affected by the proposal /
initiative:
  TOTAL operational appropriations || Commitments || (4) ||   ||   ||   ||   ||   ||   ||   ||   
 Payments || (5) ||   ||   ||   ||   ||   ||   ||   ||   
  TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL appropriations under HEADINGS 1 to 4 of the multiannual financial framework (Reference amount) || Commitments || =4+ 6 ||   ||   ||   ||   ||   ||   ||   ||   
 Payments || =5+ 6 ||   ||   ||   ||   ||   ||   ||   ||   
 Heading of multiannual financial framework || 5 || ‘Administrative expenditure’ 
EUR million (to three decimal places)
   ||   ||   || Year N || Year N+1 || Year N+2 || Year N+3 || Enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL 
 DG: <…….> || 
  Human resources ||   ||   ||   ||   ||   ||   ||   ||   
  Other administrative expenditure ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL DG <…….> || Appropriations ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL appropriations for HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) ||   ||   ||   ||   ||   ||   ||   ||   
EUR million (to three decimal places)
   ||   ||   || 2016 || 2017 || Year N+2 || Year N+3 || Enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL 
 TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments || 0.500 ||   ||   ||   ||   ||   ||   ||   
 Payments || 0.200 || 0.300 ||   ||   ||   ||   ||   ||   
3.2.2.     Estimated impact on
operational appropriations 
–     
¨  The proposal/initiative does not require the use of operational
appropriations 
–     
¨  The proposal/initiative requires the use of operational
appropriations, as explained below:
Commitment appropriations in EUR million (to three
decimal places)
 Indicate objectives and outputs   ò ||   ||   || Year N || Year N+1 || Year N+2 || Year N+3 || Enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL 
 OUTPUTS 
 Type[38]   || Average cost || Number || Cost || Number || Cost || Number || Cost || Number || Cost || Number || Cost || Number || Cost || Number || Cost || Total number || Total cost 
 SPECIFIC OBJECTIVE NO 1[39]   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 - Output ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 - Output ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 - Output ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 Subtotal for specific objective No 1 ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 SPECIFIC OBJECTIVE No 2… ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 - Output ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 Subtotal for specific objective No 2 ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL COST ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   ||   
3.2.3.     Estimated impact on
appropriations of an administrative nature
3.2.3.1.  Summary 
–     
X  The proposal/initiative does not require the
use of appropriations of an administrative nature 
–     
¨  The proposal/initiative requires the use of appropriations of an
administrative nature, as explained below:
EUR million (to three decimal places)
   || Year N[40] || Year N+1 || Year N+2 || Year N+3 || Enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL 
 HEADING 5 of the multiannual financial framework ||   ||   ||   ||   ||   ||   ||   ||   
 Human resources ||   ||   ||   ||   ||   ||   ||   ||   
 Other administrative expenditure ||   ||   ||   ||   ||   ||   ||   ||   
 Subtotal HEADING 5 of the multiannual financial framework ||   ||   ||   ||   ||   ||   ||   ||   
 Outside HEADING 5[41] of the multiannual financial framework ||   ||   ||   ||   ||   ||   ||   ||   
 Human resources ||   ||   ||   ||   ||   ||   ||   ||   
 Other expenditure of an administrative nature ||   ||   ||   ||   ||   ||   ||   ||   
 Subtotal outside HEADING 5 of the multiannual financial framework ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL ||   ||   ||   ||   ||   ||   ||   ||   
The administrative
appropriations required will be met by the appropriations of the DG which are
already assigned to management of the action and/or which have been redeployed
within the DG, together if necessary with any additional allocation which may
be granted to the managing DG under the annual allocation procedure and in the
light of budgetary constraints.
3.2.3.2.   Estimated requirements of
human resources 
–     
X  The proposal/initiative does not require the
use of human resources. 
–     
¨  The proposal/initiative requires the use of human resources, as
explained below:
Estimate to be expressed in full time
equivalent units
 ||   || Year N || Year N+1 || Year N+2 || Year N+3 || Enter as many years as necessary to show the duration of the impact (see point 1.6) 
 || Establishment plan posts (officials and temporary agents) 
 || XX 01 01 01 (Headquarters and Commission’s Representation Offices) ||   ||   ||   ||   ||   ||   ||   
 || XX 01 01 02 (Delegations) ||   ||   ||   ||   ||   ||   ||   
 || XX 01 05 01 (Indirect research) ||   ||   ||   ||   ||   ||   ||   
 || 10 01 05 01 (Direct research) ||   ||   ||   ||   ||   ||   ||   
  External personnel (in Full Time Equivalent unit: FTE)[42]   
 || XX 01 02 01 (CA, INT, SNE from the "global envelope") ||   ||   ||   ||   ||   ||   ||   
 || XX 01 02 02 (CA, INT, JED, LA and SNE in the delegations) ||   ||   ||   ||   ||   ||   ||   
 || XX 01 04 yy[43]   || - at Headquarters   ||   ||   ||   ||   ||   ||   ||   
 || - in delegations ||   ||   ||   ||   ||   ||   ||   
 || XX 01 05 02 (CA, SNE, INT - Indirect research)   ||   ||   ||   ||   ||   ||   ||   
 || 10 01 05 02 (CA, SNE, INT - Direct research) ||   ||   ||   ||   ||   ||   ||   
 || Other budget lines (specify) ||   ||   ||   ||   ||   ||   ||   
 || TOTAL ||   ||   ||   ||   ||   ||   ||   
XX is the policy area or budget title
concerned.
The human resources
required will be met by staff from the DG who are already assigned to
management of the action and/or have been redeployed within the DG, together if
necessary with any additional allocation which may be granted to the managing
DG under the annual allocation procedure and in the light of budgetary
constraints.
Description of
tasks to be carried out:
 Officials and temporary staff ||   
 External staff ||   
3.2.4.     Compatibility with the
current multiannual financial framework 
–              
X          Proposal/initiative is compatible the
current multiannual financial framework.
–              
¨         Proposal/initiative will entail reprogramming of the
relevant heading in the multiannual financial framework.
Explain what reprogramming is required, specifying the
budget lines concerned and the corresponding amounts.
[…]
–              
¨         Proposal/initiative requires application of the flexibility
instrument or revision of the multiannual financial framework.[44]
Explain what is required, specifying the headings and
budget lines concerned and the corresponding amounts.
[…]
3.2.5.     Third-party contributions 
–              
X The proposal/initiative does not provide for
co-financing by third parties. 
–              
The proposal/initiative provides for the
co-financing estimated below:
Appropriations in EUR million (to three decimal
places)
   || Year N || Year N+1 || Year N+2 || Year N+3 || Enter as many years as necessary to show the duration of the impact (see point 1.6) || Total 
 Specify the co-financing body ||   ||   ||   ||   ||   ||   ||   ||   
 TOTAL appropriations cofinanced ||   ||   ||   ||   ||   ||   ||   ||   
3.3.        Estimated impact on
revenue 
–              
X          Proposal/initiative has no financial
impact on revenue.
–              
¨         Proposal/initiative has the following financial impact:
¨         on own resources 
¨         on miscellaneous revenue 
EUR million (to three decimal places)
 Budget revenue line: || Appropriations available for the current financial year || Impact of the proposal/initiative[45]   
 Year N || Year N+1 || Year N+2 || Year N+3 || Enter as many years as necessary to show the duration of the impact (see point 1.6) 
 Article …………. ||   ||   ||   ||   ||   ||   ||   ||   
For miscellaneous ‘assigned’ revenue, specify
the budget expenditure line(s) affected.
[…]
Specify the method for calculating the impact
on revenue.
[…]
[1]               Decision
1/CP.16 of the Conference of Parties to the UNFCCC (the "Cancún
Agreements").
[2]               Based
on the Fourth Assessment Report of the Intergovernmental Panel on Climate
Change (IPCC).
[3]               Conclusions
of the European Council of 29/30.10 2009 and European Parliament Resolution of
4.2 2009 (2008/215(INI)).
[4]               COM(2010)
2020 final.
[5]               Directive
2003/87/EC and Decision 406/2009/EC.
[6]               COM(2011)
144 final
[7]               Revision
of MARPOL Annex VI
[8]               Recital
2 of the decision n°406/2009/EC and recital 3 of the directive n°2009/29/EC 
[9]               The
Second IMO Greenhouse gases study, 2009.
[10]             CE
Delft, 2009 (http://ec.europa.eu/clima/policies/transport/shipping/docs/ghg_ships_report_en.pdf).
[11]             http://ec.europa.eu/clima/policies/transport/shipping/index_en.htmhttp://ec.europa.eu/clima/policies/eccp/second/stakeholder/documentation_en.htm 
[12]             http://ec.europa.eu/clima/consultations/0014/index_en.htm

[13]             http://ec.europa.eu/clima/events/0064/index_en.htm 
[14]             IHS
Fairplay, 2011
[15]             OJ
C , , p. .
[16]             OJ
C , , p. .
[17]             Decision
n°406/2009/EC and Directive n°2009/29/EC 
[18]             OJ
L 251, 18.9.2012, P. 49
[19]             OJ
L 218, 13.8.2008, p. 30.
[20]             OJ
L131, 28.5.2009 p. 132.
[21]             OJ
L131, 28.05.2009, p. 57.
[22]             OJ
L165,18.06.2013, p. 13-40.
[23]             OJ
L 251, 18.9.2012, p. 49
[24]             OJ
L 281, 23.11.1995, p. 31.
[25]             OJ L 8, 12.1.2001, p. 1.
[26]             OJ
L 218, 13.8.2008, p. 30.
[27]             OJ
L 208, 5.8.2002, p. 1.
[28]             OJ
L 165,18.06.2013 p.13-40
[29]             OJ
L 181, 12.7.2012, p. 30-104
[30]             ABM:
Activity-Based Management – ABB: Activity-Based Budgeting.
[31]             As
referred to in Article 49(6)(a) or (b) of the Financial Regulation.
[32]             Details of management modes and references to the Financial
Regulation may be found on the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html
[33]             As
referred to in Article 185 of the Financial Regulation.
[34]             Diff.
= Differentiated appropriations / Non-Diff. = Non-differentiated
appropriations.
[35]             EFTA:
European Free Trade Association. 
[36]             Candidate
countries and, where applicable, potential candidate countries from the Western
Balkans.
[37]             Technical
and/or administrative assistance and expenditure in support of the
implementation of EU programmes and/or actions (former ‘BA’ lines), indirect
research, direct research.
[38]             Outputs
are products and services to be supplied (e.g.: number of student exchanges
financed, number of km of roads built, etc.).
[39]             As
described in point 1.4.2. ‘Specific objective(s)…’ 
[40]             Year
N is the year in which implementation of the proposal/initiative starts.
[41]             Technical
and/or administrative assistance and expenditure in support of the
implementation of EU programmes and/or actions (former ‘BA’ lines), indirect
research, direct research.
[42]             CA=
Contract Agent; LA = Local Agent; SNE = Seconded National Expert; INT = agency
staff (‘Intérimaire’); JED= ‘Jeune Expert en Délégation’ (Young Experts in
Delegations). 
[43]             ABM:
Activity-Based Management – ABB: Activity-Based Budgeting.
[44]             See
points 19 and 24 of the Interinstitutional Agreement.
[45]             As
regards traditional own resources (customs duties, sugar levies), the amounts
indicated must be net amounts, i.e. gross amounts after deduction of 25% for
collection costs.