Law firm CMS has noted that, from January 1st 2018, subject to a few exclusions, ships of more than 5,000gt will be subject to monitoring and reporting requirements on carbon dioxide emissions, fuel consumption and cargo carried. By August 31st this year a Monitoring Plan must be submitted to an accredited shipping verifier setting out how ship efficiency and carbon data is to be collected.

Until February 15th 2017 the UK Department for Transport is consulting on the proposed enforcement and penalties aspects of draft UK Regulations implementing the EU Regulation. These include potential detention of relevant ships.

CMS said that port owners and operators should make themselves aware of the forthcoming proposals. Similarly trade and industry which relies on relevant ships for transport might want to consider if and how such obligations (particularly risk of detention) are factored into any carriage agreements. Financiers of relevant ships should also give thought to how risks of detention might be best addressed in loan agreements, the law firm said.

It is estimated that relevant ships account for 55% of all ships calling into EU ports and 90% of related emissions.

The duty holders directly affected are defined in the EU Regulation as “Companies” meaning “a shipowner or any other organisation or person, such as the manager or the bareboat charterer, which has assumed responsibility for the operation of the ship from the shipowner”.

By August 31st 2017 Companies will have to submit to the independent verifiers a monitoring plan indicating the method chosen to monitor and report emissions and energy efficiency related data for each Relevant Ship.

From January 1st 2018, Companies will be required to monitor emissions for each relevant ship on a per-voyage and aggregate on an annual basis by applying the appropriate method chosen in their monitoring plan. From 2019, by April 30th of each year, Companies will be required to submit to the Commission and to the authorities of the flag States concerned, an independently verified emission report

concerning the emissions and other relevant information during the annual reporting period for each relevant ship under their responsibility.

From 2019, by June 30th of each year, all relevant ships having performed activities in the previous reporting period and visiting EU ports must carry on board a valid Document of Compliance issued by an accredited EU Regulation shipping verifier.