Preparing a monitoring plan

Shipping companies that fall within the scope of the FEUM regulation must prepare a monitoring plan for each of their ships above 5,000 gross tonnes and submit it to a verifier for assessment via THETIS-MRV. The first submission was due by 31/08/2024.

Validation of the monitoring plan

For each ship covered by the scope of FEUM, verifiers assess the conformity of the monitoring plan with the requirements of FEUM. If non-conformities are identified, the monitoring plan is returned to the shipping company for revision and resubmission for reassessment by the verifier. Once the monitoring plan has been assessed as satisfactory by the verifier, the verifier records the monitoring plan in THETIS-MRV.

Monitoring

From 01/01/2025 onwards, on the basis of monitoring plans assessed as satisfactory by the verifiers, shipping companies are required to monitor and record the relevant data, in particular data on energy consumption, the type and quantity of fuels, and greenhouse gas emissions for each ship calling at or departing from an EU port.

Reporting

Shipping companies must submit a shipboard FuelEU report each year by 31/01, covering the monitored data and records of the previous reporting year, via THETIS-MRV to an accredited verifier for verification.

 Verification of FuelEU reports

Verifiers evaluate the FuelEU report in terms of quality, completeness and compliance with the FuelEU Regulation. If no significant misstatements and non-conformities have been found, the verifier will issue a relevant verification report. If misstatements and/or non-conformities have been detected, the FuelEU report will be returned to the shipping company for correction. No later than 31/03 of each year does the verifier send the verified FuelEU report to the shipping company over THETIS-MRV and record it together with the verification report in THETIS-MRV. 

Calculation of greenhouse gas intensity and the initial compliance balance

On the basis of the FuelEU report, which has been assessed as compliant, the verifier calculates the annual average greenhouse gas intensity of the energy consumed on board the ship in question and the ship’s initial compliance balance, as well as the number of non-compliant port calls, the annual energy consumed on board, and the annual quantity of energy consumed from renewable fuels of non-biological origin (RFNBO).

Flexibility mechanisms

Between 01/04 and 30/04, shipping companies may apply the following flexibility mechanisms in order to comply with the specified greenhouse gas intensity limits and to meet the RFNBO sub-targets with respect to the previous reporting year:

• Banking/credit (compliance surpluses from over-compliance years may be carried forward to the next year.)
• Borrowing/advance (An advance from the following reporting year may be taken as a loan. This applies for a maximum of two consecutive years.)
• Pooling (Combining the compliance balances of several ships, in particular from different shipping companies, into a ‘pool’)

 Verification and recording of the final compliance balance

The verifiers verify the final compliance balances, following the application of the flexible mechanisms by 30/04 each year. Shipping companies must record the carry-over of compliance surpluses and the amount of any advance compliance surplus in THETIS-MRV in respect of the preceding reporting year by 30/04 each year. The verifiers must record the final composition of the pool and the distribution of the total compliance balance pooled to the individual ships in THETIS-MRV by 30/04 each year in respect of the preceding reporting year.

Application for review

Shipping companies may submit an application to the competent authority for a review of the conformity data determined by the verifiers by 31/05. The authority of the Member State where the verifier is accredited is the competent entity for review. This may therefore be an authority other than the competent administrative authority for the shipping company, in particular one from another Member State.

Penalties

If a ship’s verified final compliance balance as at 01/06 shows a compliance deficit with regard to greenhouse gas intensity and/or the RFNBO sub-target and/or a port call, the competent administrative authority is obliged to impose and collect appropriate penalties from the shipping company responsible for the ships in question by 30/06 of each year. This is done in the form of a penalty notice with a relevant payment deadline, which the DEHSt sends by email to the shipping company concerned. The competent authorities record penalty notices and proofs of payment in THETIS-MRV.

Additional reviews by the competent authorities

In accordance with Article 17, competent authorities may at any time carry out additional reviews of the FuelEU reports submitted by shipping companies and of verification reports drawn up and calculations carried out by verifiers for the two preceding reporting years. The competent authorities may require shipping companies to submit further documents and may carry out on-site inspections as part of the additional review. Where additional reviews are carried out, the competent authority must compile a report on this. If, in the course of an additional review, the competent authority identifies misstatements, non-conformity or calculation errors that result in non-compliance with the limits specified in Articles 4 or 6 of the FEUM regulation, the competent authority shall impose an appropriate penalty on the shipping company responsible. If a company fails to pay by the deadline, the competent authority shall remove the documents of compliance for the ships concerned from THETIS-MRV and shall only reissue them once the penalty has been paid.

FuelEU Document of Compliance

Ships calling at, departing from or staying in an EU port must hold a valid FuelEU document of compliance up to 30/06 of the year following the reporting period.

Penalties

If a ship has failed to meet the obligation to hold a valid Fuel EU Document of Compliance (DoC) in at least two consecutive reporting years, and compliance with the FEUM regulation cannot be ensured by other measures, the competent authority may impose an expulsion or detention order in accordance with Article 25 of the FEUM regulation in respect of the ship concerned, after the shipping company has been given the opportunity to comment.