The world of shipping, like other sectors, has the goal of decrease the level of pollution helping the global environment. One of the main solution implemented in the shipping industry is the conversion from the most used fuels to the environmental friendly LNG and the new MRV (Monitoring Reporting and Verification) system.
The goal of one of the main European Union Program is to make easier the conversion from the actual fuels to the greener LNG. In this way, the MARPOL Convention coming into force in 1st July 2010 imposes a Sulphur cap on fuel oil to control SOx emission.
The Directive 2012/33/EU requires member states to determine effective and dissuasive penalties for non-compliance with the provisions. The main rule within the Directive consider:
– 0.1% in ECA
– Plan to gradually reduce limit from 3.5% to 0.5% outside ECA in 2020
Source: PwC study
In Europe, the first LNG market Zone was along the Norway coast, the reason behind was the establishment of Norwegian NOx Low Sulphur area in 2008, with this system the Ferries and Cargo vessels pay on the one hand 0.5 € per kilo NOx (1) to the fund and in return they can receive support for investments aimed to reduce NOx. The major results are the follow:
- One of the most effective NOx-reduction measures for ships is switching to LNG fuel, which reduces the NOx emissions by 85-90%
- There are 65 ships operating on LNG fuel in Norway
- The NOx Fund has granted support to over 60 ships converted to LNG or new ships (in operation and on order)
- The total funding to LNG projects amounts to more than 110M€ in the last three years
For Italy, the LNG should be considered as an important opportunity. Thanks to the strategical position located in one of the wider areas of trade and shipping passage, the construction of new LNG Bunkering Hub can be an important occasion for the Italian ports to catch vessels traffic directed to the major North Europe Ports.
At the moment in Italy have been built 3 Bunkering Hubs:
- LNG MED GAS at Terminal Gioia Tauro
- API NOVA ENERGIA at Falconara Marittima
- NUOVE ENERGIE at Porto Empedocle
Waiting to be Authorized
- EDISON at Rosignano
- SMART GAS at Monfalcone
Source: PwC Study
Another important tool, which European Union will implement to check the vessel pollution, will be the MRV (Monitoring, Reporting and Verification): this system will be available in the 2018 although initial requirements will take effect as early as 2017.
The Big change will be the obligation for each vessel to carry a Document of Compliance , for the Member State Ports. A Doc will be issued by an accredited verifier when the ship’s Annual Emissions Report, outlining the emissions data from voyages has been verified, and found to be free from material misstatements and in accordance with the ship’s monitoring plan.
The MRV Timeline:
- 1 July 2015 – Eu regulation on the MRV of CO2, emissions from maritime transport come into force
- 2016 – Further development of monitoring;
- 2016 2017 – Understanding & Preparation Phase for Shipping companies;
- August 31 2017 – Companies shall submit to the verifiers a monitoring plan for each of their ships reporting CO2;
- April 30 2019 – Deadline for submitting a verified emissions report;
- June 30 2019 – Ships arriving at or departing from a port under the jurisdiction of a Member State, and which have carried out voyages during 2018, shall carry on board a valid document of compliance;
- Annual submission of a verified emissions report by 30 April of each year.
The final conclusion shows that the European Union, according to the Paris Agreements, has the intention to move on a sustainable and green path. In the shipping field the establishment on new ECA areas, the construction of New Vessels with green fuels like LNG and new regulation like MRV, seem to guarantee the decision of EU to arrive at the Zero Emission Goals.