SECTION 1 — Compliance balance
Calculation of greenhouse gas intensity of the energy used on board, ship’s compliance balance, and non-compliant port calls
1. On the basis of the FuelEU report or partial FuelEU report verified as satisfactory, the verifier shall:
(a)
calculate, using the method specified in Annex I of to Regulation (EU) 2023/1805, the yearly average greenhouse gas intensity of the energy used on board by the ship concerned;
(b)
calculate, using the formula specified in Part A of Annex IV to Regulation (EU) 2023/1805, the ship’s compliance balance, adjusted for any advance compliance surplus banked or borrowed in the previous reporting period;
(c)
calculate the number of non-compliant port calls, including the time spent moored at the quayside and the time spent at anchorage where applicable in accordance with Article 6(11) of Regulation (EU) 2023/1805, for each port call non-compliant with the requirements set out in Article 6 of Regulation (EU) 2023/1805, in the previous reporting period starting from the reporting period of 2030;
(d)
calculate the amount of the yearly energy used on board by a ship, excluding energy from Onshore Power Supply;
(e)
calculate the amount of the yearly energy used on board by a ship coming from renewable fuels of non-biological origin (RFNBOs).
2. In addition to the requirements of Article 16(4) of Regulation (EU) 2023/1805, when determining the non-compliant port calls, the verifier shall verify that the reported hours of non-compliance with the requirements set out in Article 6 of Regulation (EU) 2023/1805 are in fact related to ships that are securely moored at quayside in ports referred to in Article 6(1) and (2) of that Regulation, or at an anchorage referred to in Article 6(11) of that Regulation.
3. By 31 March of the reporting year and no later than 1 month thereafter, the verifier shall record it in the FuelEU database the information referred to in Article 16(4) of Regulation (EU) 2023/1805. For that purpose, the verifier shall make use of the template set out in Annex III. That information should be accompanied by the following elements:
(a)
a reference to the verification report;
(b)
a reference to the FuelEU report and the reporting period subject to verification;
(c)
a reference to one or more monitoring plans that have been assessed as satisfactory;
(d)
a reference to the assumptions and sources of data.
Verified compliance balance report
1. After the application of the flexibility mechanisms in accordance with Articles 20 and 21 of Regulation (EU) 2023/1805, and Articles 28 and 29 of this Regulation, the verifier that verified the FuelEU report shall:
(a)
record in the FuelEU database the verified compliance balance of the ship;
(b)
notify the Commission and the administering State whether the conditions for issuing the FuelEU document of compliance are fulfilled.
2. The FuelEU document of compliance referred to in paragraph 1, point (b), shall contain the information set out in Annex IV.
SECTION 2 — Flexibility mechanisms
Banking and borrowing
1. Where a ship has a compliance surplus for the reporting period, following a request from the company to bank the compliance surplus, the verifier shall assess the information on the compliance surplus and verify if it is in accordance with Articles 19, 20 and 21 of Regulation (EU) 2023/1805, and the calculations referred in Article 26 of this Regulation. Following an assessment of a request as compliant, the verifier shall approve the request for banking the compliance surplus.
2. Where a compliance surplus results from the total pool compliance balance, the verifier shall assess the calculations and the information related to the pooling of compliance, before approving the banking of the compliance surplus.
3. Where the ship has, for the reporting period, a compliance deficit, following a request from the company to borrow an advance compliance surplus of the corresponding amount from the following reporting period, the verifier shall assess the information on the compliance deficit and verifythat the advance compliance surplus multiplied by 1.1 is subtracted from the same ship’s compliance balance in the following reporting period in accordance with Article 20(2) of Regulation (EU) 2023/1805. Where the conditions set out in Article 20(2) points (a) and (b) are exceeded, the verifier shall not approve borrowing of the advance compliance surplus.
Pooling of compliance
1. Companies shall notify in the FuelEU database: (i) the intention of including the ship’s compliance balance in a pool; and (ii) the allocation of the total compliance balance of the pool to each individual ship. Where the ships participating in the pool are controlled by two or more companies the notification shall be accepted by all the companies concerned in the FuelEU database. The notification should include the following: (i) the allocation of the total compliance balance of the pool to its ships; (ii) the choice of the verifier selected for verifying the allocation of the total compliance balance of the pool to each individual ship; and (iii) a declaration that the ships participating in the pool are not allocated to other pools.
2. The verifier selected for verifying the allocation of the total compliance balance of the pool to each individual ship shall verify that the allocation of the pooled balance to each ship are in accordance with Article 21 of Regulation (EU) 2023/1805, and the calculations referred in Article 26 of this Regulation. The pool shall be valid only where it complies with Article 21(4) of Regulation (EU) 2023/1805.
3. Where one of the conditions referred to in Article 21(4) of Regulation (EU) 2023/1805 are not fulfilled, the verifier selected for verifying the allocation of the total compliance balance of the pool to each individual ship shall not approve the request for pooling. The verifier shall make a statement of the non-conformities detected.
CHAPTER IV — REQUIREMENTS FOR VERIFIERS
Continued competence process
1. The verifier shall establish, document, implement and maintain a continued competence process to ensure that all personnel entrusted with verification activities are competent to carry out the tasks that are allocated to them.
2. For the purposes of the competence process referred to in paragraph 1, the verifier shall establish, document, implement and maintain the following aspects:
(a)
general competence criteria for all personnel undertaking verification activities in accordance with Article 32;
(b)
specific competence criteria for each function within the verifier undertaking verification activities, in particular for the shipping FuelEU auditor, the independent reviewer and the technical expert in accordance with Articles 32, 33 and 34;
(c)
a method for ensuring the continued competence and regular evaluation of the performance of all personnel undertaking verification activities;
(d)
a process for ensuring ongoing training of the personnel undertaking verification activities;
(e)
a process for assessing whether the verification engagement falls within the scope of the verifier’s accreditation, and whether the verifier has the competence, personnel and resources required to select the verification team and successfully complete the verification activities within the timeframe required.
3. In evaluating the competence of the personnel pursuant to paragraph 2, point (c), the verifier shall assess that competence against the competence criteria referred to in paragraph 2, points (a) and (b).
4. The process referred to in paragraph 2, point (e) shall also include a process for assessing whether the verification team holds all the competence and persons required to carry out verification activities for a specific company.
5. The verifier shall develop general and specific competence criteria which are in conformity with the criteria laid down in Article 31(4) and Articles 31, 32 and 33.
6. The verifier shall monitor regularly, and at least annually, the performance of all personnel undertaking verification activities in order to confirm their continued competence.
7. The verifier shall regularly review the competence process referred to in paragraph 1 to ensure that:
(a)
the competence criteria referred to in paragraph 2, points (a) and (b), are developed in accordance with the required competence;
(b)
all issues that may be identified related to the setting of the general and specific competence criteria pursuant to paragraph 2, points (a) and (b), are addressed;
(c)
all the requirements in the competence process are updated and maintained as appropriate.
8. The verifier shall have a system for recording the results of the activities carried out in the competence process referred to in paragraph 1.
9. A sufficiently competent evaluator shall assess the competence and performance of shipping FuelEU auditors and shipping FuelEU lead auditors. The evaluator shall monitor those auditors during the verification of a FuelEU report or partial FuelEU report on the site of the company as appropriate, to determine whether they meet the competence criteria.
10. Where a member of personnel fails to demonstrate that the competence criteria for a specific task allocated to that member have been fully met, the verifier shall identify and organise additional training or supervised work experience for that member of personnel. The verifier shall monitor that member until such member demonstrates to the verifier conformity with the competence criteria.
Verification teams
1. For each verification engagement, the verifier shall bring together a verification team capable of performing the verification activities referred to in Articles 4 to 29.
2. The verification team shall consist at least of one shipping FuelEU lead auditor and, where appropriate in the light of the verifier’s understanding of the complexity of the tasks to be carried out and its ability to conduct the necessary risk assessment, a suitable number of shipping FuelEU auditors and technical experts.
3. For the independent review of the verification activities related to a particular verification engagement, the verifier shall appoint an independent reviewer who shall not be part of the verification team.
4. Team members shall have a clear understanding of their specific role in the verification process and shall be able to communicate effectively in the language required to: (i) perform their verification tasks; and (ii) examine the information submitted by the company.
5. Where the verification team consists of one person, that person shall meet all the competence requirements for the shipping FuelEU auditor and the shipping FuelEU lead auditor and the requirements laid down in Article 32.
Competence requirements for shipping FuelEU auditors and shipping FuelEU lead auditors
1. Shipping FuelEU auditors shall have the competence to assess monitoring plans, and verify both FuelEU reports and partial FuelEU reports in accordance with Regulation (EU) 2023/1805.
2. For the purposes of paragraph 1, shipping FuelEU auditors shall have at least the following knowledge:
(a)
knowledge of Regulation (EU) 2023/1805 and related secondary legislation, and relevant guidelines issued by the Commission and Member States;
(b)
knowledge and experience of data and information auditing, including:
(i)
data and information auditing methodologies, the application of the materiality level, and assessing the materiality of misstatements;
(ii)
analysing inherent and control risks;
(iii)
sampling techniques in relation to data sampling and checking control activities;
(iv)
assessing data and information systems, IT systems, data-flow activities, control activities, control systems and procedures for control activities.
3. In addition, sector-specific knowledge and experience of relevant aspects set out in Annex V shall be taken into consideration.
4. In addition to the competence requirements for a shipping FuelEU auditor set out in paragraphs 1, 2 and 3, a shipping FuelEU lead auditor shall have demonstrated competence to lead a verification team and be responsible for carrying out the verification activities in accordance with this Regulation.
Competence requirements for independent reviewers
1. The independent reviewer shall have the appropriate authority to review the draft conclusions on the assessment of the monitoring plan, the draft verification report, and the internal verification documentation pursuant to Article 36.
2. The independent reviewer shall meet the competence requirements for shipping FuelEU lead auditors referred to in Article 32.
3. In order to assess whether the internal verification documentation is complete and whether enough evidence has been gathered in the course of the verification activities, the independent reviewer shall have the necessary competence to:
(a)
analyse the information provided and confirm its completeness and integrity;
(b)
challenge missing or contradictory information;
(c)
check data trails to assess whether the internal verification documentation is complete and provides sufficient information to support the draft conclusions on the assessment of the monitoring plan, the draft verification report and conclusions examined in the internal review.
Use of technical experts
1. When carrying out verification activities, a verifier may use technical experts to provide detailed knowledge and expertise on a specific subject matter necessary to support the shipping FuelEU auditor and shipping FuelEU lead auditor in carrying out their verification activities.
2. Where an independent reviewer does not have the competence to assess a particular issue in the review process, the verifier shall request the support of a technical expert.
3. The technical expert shall have the competence and expertise required to effectively support the shipping FuelEU auditor and the shipping FuelEU lead auditor, or the independent reviewer, where necessary, on the subject matter for which their knowledge and expertise is requested. In addition, the technical expert shall have a sufficient understanding of the knowledge and competencies referred to in Article 32.
4. The technical expert shall undertake specified tasks under the direction and full responsibility of the independent reviewer or of the shipping FuelEU lead auditor of the verification team in which the technical expert is operating.
Procedures for verification activities
1. Verifiers shall establish, document, implement and maintain one or more procedures and processes for the verification activities referred to in Articles 4 to 29.
2. When establishing and implementing such procedures and processes, the verifier shall carry out the activities in accordance with the harmonised standard set out by Regulation (EC) No 765/2008 concerning requirements for greenhouse gas validation and verification bodies for use in accreditation or other forms of recognition.
3. Verifiers shall establish, document, implement and maintain a quality-management system to ensure consistent development, implementation, improvement and review of the procedures and processes in accordance with the harmonised standard referred to in paragraph 2.
4. The quality management system referred to in paragraph 3 shall include the following elements:
(a)
policies and responsibilities;
(b)
a management review;
(c)
internal audits;
(d)
corrective actions;
(e)
actions to address risks and opportunities and preventive actions;
(f)
control of documented information.
5. In addition, verifiers shall establish the following procedures, processes and arrangements in accordance with the harmonised standard referred to in paragraph 2:
(a)
a process and policy for communication with the company;
(b)
appropriate arrangements to safeguard the confidentiality of information obtained;
(c)
a process for dealing with appeals by the companies;
(d)
a process for dealing with complaints, including an indicative timescale, of the companies;
(e)
a process for issuing a revised verification report where an error in the verification report or FuelEU report or partial FuelEU report is identified after the verifier has submitted the verification report to the company;
(f)
a procedure or process for outsourcing verification activities to other organisations;
(g)
a procedure or process to ensure the verifier takes full responsibility for verification activities performed by contracted individuals;
(h)
processes ensuring the proper functioning of the quality management system referred to in paragraph 3, including the following processes:
(i)
processes for the review of the quality management system at least once a year, not exceeding 15 months between management reviews;
(ii)
processes for conducting internal audits at least once a year, not exceeding 15 months between internal audits;
(iii)
processes for identifying and managing non-conformities in the verifier’s activities and taking corrective action to address these non-conformities;
(iv)
processes for identifying risks and opportunities in the verifier’s activities and taking preventive actions to mitigate those risks;
(v)
processes for the control of documented information.
Internal verification documentation
1. The verifier shall prepare and compile internal verification documentation containing at least:
(a)
the results of the verification activities performed;
(b)
the verification plan, the strategic analysis and the risk assessment;
(c)
sufficient information to support the assessment of the monitoring plan and of the draft verification report, including a due justification as to whether or not misstatements were material.
2. The internal verification documentation shall be drafted in such a way that the independent reviewer referred to in Articles 8 and 24 and the national accreditation body can assess whether the verification has been performed in accordance with this Regulation.
Records and communication
1. Verifiers shall maintain and manage records to demonstrate compliance with this Regulation, including as regards the competence and impartiality of their personnel.
2. A verifier shall on a regular basis make information available to the company in accordance with the harmonised standard referred to in Article 35(2).
3. Verifiers shall safeguard the confidentiality of information obtained in the course of the verification, in accordance with the harmonised standard referred to in Article 35(2).
Independence and impartiality
1. A verifier shall be independent from a company and impartial in carrying out its verification activities.
2. To ensure independence and impartiality, the verifier and any part of the same legal entity shall not be a company, the owner of a company or owned by it, nor shall the verifier have relations with the company that could affect its independence and impartiality.
3. Verifiers shall be organised in such a way as to safeguard their objectivity, independence and impartiality. The relevant requirements laid down in the harmonised standard referred to in Article 35(2) shall apply.
4. Verifiers shall not carry out verification activities for a company that poses an unacceptable risk to their impartiality or in respect of which they have a conflict of interest. The verifier shall not use personnel or contracted persons in the assessment of a monitoring plan or in the verification of a FuelEU report and partial FuelEU report that could have an actual or potential conflict of interest. The verifier shall also ensure that the activities of personnel or organisations do not affect the confidentiality, objectivity, independence and impartiality of the verification. For that purpose, the verifier shall monitor the risks to impartiality and take appropriate action to address those risks.
5. A conflict of interest for a verifier in its relations with a company shall be deemed to have arisen in particular in either of the following cases:
(a)
where the relationship between the verifier and the company is based on common ownership, common governance, common management or personnel, shared resources, common finances and common contracts or common marketing;
(b)
where the company has received consulting services referred to in paragraph 7, point (a), or technical assistance referred to in paragraph 7, point (b), from a consultancy body, technical assistance body or another organisation having relations with the verifier and threatening the impartiality of the verifier.
6. For the purposes of paragraph 5, point (b), the verifier’s impartiality shall be deemed compromised where the relations between the verifier and the consultancy body, technical assistance body or the other organisation is based on common ownership, common governance, common management or personnel, shared resources, common finances, common contracts or common marketing and common payment of sales commission or other inducement for the referral of new clients.
7. An unacceptable risk to the impartiality or a conflict of interest shall be deemed to have arisen where a verifier, or any part of the same legal entity, provides a company with the following:
(a)
consulting services to develop part of the monitoring and reporting process described in the monitoring plan, including the development of the monitoring methodology, the drafting of the FuelEU report or the partial FuelEU report and the drafting of the monitoring plan;
(b)
technical assistance to develop or maintain the system for monitoring and reporting emissions or other relevant information pursuant to Regulation (EU) 2023/1805.
8. Verifiers shall not outsource the independent review or the issuance of the verification report.
9. Where verifiers outsource other verification activities, sub-contracted companies shall meet the relevant requirements laid down in the harmonised standard referred to in Article 35(2).
10. However, contracting individuals to carry out verification activities shall not constitute outsourcing for the purposes of paragraph 9 where the verifier, when contracting those individuals, takes full responsibility for the verification activities performed by contracted personnel.
11. When contracting individuals for carrying out verification activities the verifier shall require those individuals to sign a written agreement that they comply with the procedures of the verifier and that there is no conflict of interest in carrying out those verification activities.
12. Verifiers shall establish, document, implement and maintain a process to ensure their continuous impartiality and independence, and that of the parts of the same legal entity, of other organisations referred to in paragraph 6, and of all personnel and contracted individuals involved in the verification. That process shall include a mechanism to safeguard the impartiality and independence of the verifier and shall meet the relevant requirements laid down in the harmonised standard referred to in Article 35.
13. When verifying a company which has already verified in previous years, the verifier shall consider the risk to impartiality and take the necessary measures to reduce the risk of impartiality.
Entry into force
This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union .
This Regulation shall apply from 1 September 2024.
Source: EUR-Lex (Publications Office of the EU), © European Union, reuse permitted under Commission Decision 2011/833/EU.
