Offshore vessel owners: get ready to report your GHG emissions

Offshore vessel owners will need to be prepared to comply with new regulations regarding the monitoring and reporting of their fleet’s greenhouse gas (GHG) emissions, including CO2, methane and nitrous oxide.

Starting 1 January 2025, offshore vessels of 400 gross tonnes (gt) and above and general cargo ships of 5,000 gt and above will be obligated to report their GHG emissions under the amended EU Monitoring, Reporting and Verification (MRV) regulation. Starting 2025, vessel owners will have to submit a verified emissions report for every vessel in their fleet to the European Commission (EC) by 31 March of each year. The regulation covers emissions from voyages to and from ports made by vessels carrying cargo or passengers operating in the European Economic Area (EEA). The European Commission is currently discussing future guidance documents to support stakeholders in meeting MRV obligations in relation to offshore ship emissions. The MRV regulation applies to offshore vessels of all flag states. Emissions from offshore vessels transiting in the EEA for the sole purpose of dry docking or repairs to the vessel or equipment are not considered as ‘ports of call’ under the MRV regulation.

“This is not something you can just put under the carpet”

“What types of offshore vessels are covered has not been decided, but the industry needs to be prepared for different EU regulations and other IMO regulations in the future, even smaller vessels,” DNV director of offshore classification, Torgeir Sterri tells Riviera. “This is not something you can just put under the carpet,” he says.

What this means for OSV owners is that in the not-too-distant future — probably 2027 — their offshore vessels will fall under the EU Emissions Trading System (EU ETS).

At OTC 2024 in May, DNV also announced it would release new rules and standards for offshore based on industry feedback in July. These new rules, which will come into force 1 January 2025, are designed to help owners “unlock the next generation of technologies,” says Mr Sterri.

These changes cover new notations for floating spaceports for vessels intended for use as launch and recovery platforms for spacecraft, a revision to the diving systems standard to align more closely with the IMO diving code, updated structural design standards, consolidation of rules covering remotely operated and autonomous underwater vehicles, and a new notation for cybersecurity for offshore units.

Based on his discussions with clients, Mr Sterri says the four topics that consistently come up are decarbonisation, digitalisation, reducing opex and cybersecurity.

“For decarbonisation, it is about maximising energy and minimising emissions. That is the challenge,” he says. And, on digitalisation, there is a drive to “use data to work differently to operate more efficiently and reduce opex,” and secure that data.

Mr Sterri notes rapid developments in engine, battery and fuel-cell technology, and the use of LNG, ammonia, hydrogen, methanol, and carbon capture systems.

But he cautions change also comes with risk. “We are moving from a situation where the industry essentially used one fuel to a future of multiple fuels. We must not forget that with this new technology, we also see risks. While these new types of fuels offer new ways to decarbonise, if we don’t use them in a safe way, it will slow us down. One accident will slow us down for years. That’s where we can play a crucial role to minimise risk,” he says.