How to avoid emissions regulation verification delays

Any verification delays can be costly for shipowners and managers. The good news is that most delays are entirely preventable. Here we share what you need to get right, and where to avoid going wrong. 

‍The evolving regulatory landscape

The past decade has seen big changes in global and regional emissions regulations. Since the EU’s Monitoring, Reporting, and Verification (EU MRV) was introduced in 2015, the compliance burden has grown. Global regulations like the IMO’s DCS and Carbon Intensity Indicator (CII) followed, before the EU stepped up its requirements with its Emissions Trading Scheme (EU ETS) and, most recently, FuelEU Maritime. This year will also see the introduction of the UK’s own ETS scheme. 

The requirements are not the only thing to have changed: non-compliance now also comes with significant, often financial consequences. This means that non-compliance, or even delayed verification, can become a tangible cost exposure. 

‍Read More: How to avoid the hidden risks of regulatory non-compliance

‍The three root causes of verification delays

When the verification process hits a block, there is usually a data problem at the root. Industry verifiers consistently identify three recurring issues: poor data quality, reporting gaps, and logical inconsistencies. 

‍Poor Data Quality

Submitted data often fails to meet the standards verifiers require. Outliers, unreasonable values, and other anomalies that could have been caught before submission are instead found during verification. This triggers a back-and-forth between shipowner and verifier that delays the entire process. 

‍Reporting Gaps

Incomplete datasets often show up during the annual verification process. It is impossible for verifiers to form a complete picture of the reporting period without complete data. So, when there is insufficient data to make a year-end statement, the process is blocked. 

‍Logical Inconsistencies

Simple sequencing errors, such as an arrival event recorded without a corresponding departure event, are some of the most common issues. Once again, such inconsistencies force verifiers to pause the process and engage with shipowners to resolve the problem before verification can continue. 

In any of these scenarios, the deeper the inconsistency, the more time consuming it will be to rectify. This not only causes stress to your crew and onshore staff, but could leave you at risk of missing regulatory deadlines and facing steep penalties. 

‍How to avoid emissions verification delays

The single most important thing shipowners can do, is take ownership of, and be proactive about, data quality. This needs to be done early, not at the point of submission. Waiting until the last minute and hoping the data holds up is a strategy that consistently fails. 

Ensure best practice by:‍

• Implementing ongoing data validation throughout the reporting period, not just at year-end. 
  
  • Automated data quality checks will catch outliers, gaps, and sequencing errors before they even reach the verifier. 
• Ensure crew and shore-based teams are aligned on reporting requirements and timelines. 
  
  • This can be achieved by using centralised reporting where all stakeholders have ongoing access to reported data. 

As maritime emissions regulations continue to evolve, it is the fleets that have built robust, proactive compliance processes that will be best positioned for successful verification. This will help with avoiding penalties and delays while also demonstrating reliability to charterers, partners, and regulators. 

‍Looking to simplify your emissions compliance process? Talk to our team about how Spinergie Smart Fleet Management can help your fleet stay ahead.