EC Unveils Proposed Legislation for Emissions Monitoring and Reporting

EU Commissioner Connie Hedegaard said the plan will offer economic benefits to ship owners

The European Commission (EC) today unveiled proposed legislation requiring shipowners to monitor and report the ships' annual carbon dioxide (CO2) emissions.

"Today we are charting a clear course towards reducing maritime greenhouse gas emissions," said Connie Hedegaard, European Union (EU) Commissioner for Climate Action.

"The EU monitoring system will bring environmental and economic gains for the shipping sector by increasing transparency about emissions and creating an incentive for ship-owners to cut them."

The proposed legislation would create a framework for collecting and publishing annual data from all ships over 5,000 gross tonnes that use EU ports, regardless of where they are registered, starting in January 2018.

Companies can choose their preferred monitoring technology, and reporting will be based on existing documents and equipment carried on ships.

The system is expected to cut CO2 emissions by 2 percent and reduce owners' costs by up to €1.2 billion ($1.6 billion) per year in 2030, while also providing useful data to help ship owners make decisions on major investments.

The proposal goes to the European Parliament and Council, who must approve it before it goes into effect.

Hedegaard said the plan is in line with measures being discussed by the International Maritime Organization (IMO).

Commission Vice President Siim Kallas said IMO rules are the best way to address global industries like maritime transport, and the EU will continue working toward a global solution

"Today's proposal is a significant contribution to IMO efforts to cut fuel use and increase the fuel efficiency of ships with a range of instruments including technical and market-based measures," he said.

Non-governmental organisations Transport and Environment (T&E) and Seas at Risk called the proposal "timid," and said the plan should have included market-based incentives for CO2 reduction, more effective monitoring methods, and controls on other pollutants like sulfur oxide (SOx) and nitrogen oxides (NOx).

"Monitoring, reporting and verifying is all very well, but we also need emissions reduction," said John Maggs of Seas at Risk.

"Some suggested measures for monitoring emissions are far more robust and effective than others, and policymakers should have incentivised these over current practices.

"Business as usual should simply be out of the question."