DNV GL releases first cyber security class notations

The European Union’s Emissions Trading System (EU ETS) was extended to cover emissions from shipping as of 1^st January 2024.

The EU ETS is limited by a 'cap' on the number of emission allowances. Within the cap, companies receive or buy emission allowances, which they can trade as needed. The cap decreases every year, ensuring that total emissions fall.

Each allowance gives the holder the right to emit:

One tonne of carbon dioxide (CO2), or;
The equivalent amount of other powerful greenhouse gases, nitrous oxide (N2O) and perfluorocarbons (PFCs).
The price of one ton of CO2 allowance under the EU ETS has fluctuated between EUR 60 and almost EUR 100 in the past two years. The total cost of emissions will vary based on the cost of the allowance at the time of purchase, the vessel’s emissions profile and the total volume of voyages performed within the EU ETS area. The below is for illustration purposes:
~A 30.000 GT passenger ship has total emissions of 20.000 tonnes in a reporting year, of which 9.000 are within the EU, 7.000 at berth within the EU and 4.000 are between the EU and an outside port. The average price of the allowance is EUR 75 per tonne. The total cost would be as follows:
~~9.000 * EUR 75 = EUR 675.000
~~7.000 * EUR 75 = EUR 525.000
~~4.000 * EUR 75 * 50% = EUR 150.000
~~Total = EUR 1.350.000 (of which 40% is payable in 2024)
For 2024, a 60% rebate is admitted to the vessels involved. However, this is reduced to 30% in 2025, before payment is due for 100% with effect from 2026.
Emissions reporting is done for each individual ship, where the ship submits their data to a verifier (such as a class society) which in turns allows the shipowner to issue a verified company emissions report. This report is then submitted to the administering authority, and it is this data that informs what emission allowances need to be surrendered to the authority.
The sanctions for non- compliance are severe, and in the case of a ship that has failed to comply with the monitoring and reporting obligations for two or more consecutive reporting periods, and where other enforcement measures have failed to ensure compliance, the competent authority of an EEA port of entry may issue an expulsion order. Where such a ship flies the flag of an EEA country and enters or is found in one of its ports, the country concerned will, after giving the opportunity to the company concerned to submit its observations, detain the ship until the company fulfils its monitoring and reporting obligations.
Per the EU’s Implementing Regulation, it is the Shipowner who remains ultimately responsible for complying with the EU ETS system.

There are a number of great resources on the regulatory and practical aspects of the system – none better than the EU’s own:

‍https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02003L0087-20230605

‍https://climate.ec.europa.eu/eu-action/transport/reducing-emissions-shipping-sector_en

‍https://climate.ec.europa.eu/eu-action/eu-emissions-trading-system-eu-ets/what-eu-ets_en‍

Classification society DNV GL last week announced the forthcoming publication of class notations to help shipowners and operators protect their assets from cyber security incidents. DNV GL said that the new class notations – Cyber secure – would help owners and operators protect vital systems from cyber security threats. They will be published on the DNV GL rules page on July 1st.

DNV GL – Maritime CEO Knut Ørbeck-Nilssen, said that “whether in machinery, navigation or communication systems, programmable control systems are a longstanding and essential part of ships and offshore units, but the increasing integration and connectivity of these systems represents an ever-larger target for cyber-security threats”, adding that “as all programmable components are theoretically vulnerable to cyber security threats we have set out, with the new Cyber secure class notations, to offer owners and operators a framework to improve and demonstrate their cyber resilience.”

The Cyber secure class notations have three different qualifiers, Basic, Advanced and +.Basic is primarily intended for ships in operation. Advanced has been designed to be applied throughout the newbuilding process, with requirements for asset owners and operators, system integrators (e.g. yards), and equipment manufacturers. The Basic and Advanced qualifiers cover a number of essential systems, including propulsion, steering, navigation, and power generation.

The third qualifier, +, is intended for systems that are not part of the default scope of Basic/Advanced. This, said DNV GL, would give owners and operators the flexibility to identify the threats, assess, and secure extra systems which are of particular importance to their operations.

The Cyber secure class notations build on DNV GL’s Recommended Practice (DNVGL-RP-0496) on cyber security and extends to the cyber security assessment of control system components type approval program DNVGL-CP-0231, with which makers can now demonstrate the security of their systems through an independent verification process.

DNV GL releases first cyber security class notations

The European Union’s Emissions Trading System (EU ETS) was extended to cover emissions from shipping as of 1st January 2024.

The European Union’s Emissions Trading System (EU ETS) was extended to cover emissions from shipping as of 1^st January 2024.