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MRV: a way forward on emissions reduction

MRV: a way forward on emissions reduction
To the ever-growing list of acronyms related to carbon emissions reduction – think GHG, MBM, UNFCCC, CBDR and so on – add MRV, standing for Measuring (or Monitoring), Reporting and Verification, the new concept behind which the shipping industry and regulatory bodies alike are rapidly aligning.

Talk of “measurable, reportable and verifiable” greenhouse gas (GHG) mitigation actions and commitments first cropped up in the Bali Action Plan agreed at a meeting of the UN Framework Convention on Climate Change (UNFCCC) in late 2007. The idea subsequently gained traction in shipping in 2012, when the US submitted a proposal to the IMO that MRV should form the cornerstone of any Market Based Mechanisms (MBM) to incentivise the reduction of shipping emissions.

Then in late 2012 the European Commission (EC) announced that it was suspending plans to introduce regional regulation of CO2 emissions from shipping n 2013, in favour of mandatory MRV. Previously it had threatened to introduce an Emissions Trading Scheme for shipping if the IMO failed to introduce global regulation, but attempts to introduce such a scheme for aviation last year showed just how problematic that could prove.

Earlier this month, the International Chamber of Shipping (ICS) threw its weight behind the US and EC position, saying it fully supported the idea of establishing a mandatory system of MRV provided any measure adopted was developed and agreed at the IMO. MRV would be “simple to administer and primarily based on fuel consumption measured by bunker delivery notes,” it added.

The US proposal, among others, is due to be considered by the IMO’s MEPC meeting in mid-May, but now has a considerable head of political steam behind it. Also, the concept of MRV bypasses the problem of Common But Differentiated Responsibilities (CBDR) between developed and developing nations (as enshrined in the Kyoto Protocol) that has stymied IMO’s attempts to introduce a single set of global emissions regulations for shipping.

MRV works on the simple principle that in order to reduce something you must first measure it. A subsequent phase might involve the drawing up of operational indices for vessels against which performance could be incentivised, but sceptics point out that the huge diversity and complexity of shipping operations would make this very difficult to police. However, even mandatory collection of data on emissions is an important first step and one that could be reasonably expected to lead to reductions in its own right.