CHAPTER II

VERIFICATION ACTIVITIES
SECTION 1

Assessment of monitoring plans

Information to be provided by companies
Article 4
1
Companies shall provide the verifier with their ship's monitoring plan using a template corresponding to the model set out in Annex I to Implementing Regulation (EU) 2016/1927. If the monitoring plan is in a language other than English, they shall provide an English translation.
2
Before the start of the assessment of the monitoring plan, the company shall also provide the verifier with at least the following information:
a
relevant documentation or description of the ship's installations, including emissions sources certificates, flow meters used (if applicable), procedures and processes or flowcharts prepared and maintained outside the plan, where applicable, to which reference is made in the plan;
b
in the event of those changes to the monitoring and reporting system referred to in points (c) and (d) of Article 7(2) of Regulation (EU) 2015/757, relevant updated versions or new documents enabling the assessment of the amended plan.
3
The company shall, upon request, provide any other information deemed relevant to carry out its assessment of the plan.

Assessment of monitoring plans
Article 5
1
When assessing the monitoring plan, the verifier shall address the assertions of completeness, accuracy, relevance and conformity with Regulation (EU) 2015/757 of the information provided in the monitoring plan.
2
The verifier shall at least:
a
assess that the company used the appropriate monitoring plan template and that information is provided for all mandatory items referred to in Annex I to Implementing Regulation (EU) 2016/1927;
b
verify that the information in the monitoring plan accurately and completely describes the emission sources and measurement equipment installed on board the ship and the systems and procedures in place to monitor and report relevant information pursuant to Regulation (EU) 2015/757;
c
ensure that adequate monitoring arrangements are provided for in the event of the ship seeking to benefit from the derogation of ‘per voyage’ monitoring of fuel and CO2 emissions pursuant to Article 9(2) of Regulation (EU) 2015/757;
d
where applicable, assess whether the information submitted by the company regarding elements, procedures or controls implemented as part of the ship's existing management systems or covered by harmonised relevant quality, environmental or management standards is relevant for monitoring CO2 emissions and other relevant information and reporting pursuant to Regulation (EU) 2015/757 and Commission Implementing Regulation (EU) 2016/1928 .
3
For the purpose of assessing the monitoring plan, the verifier may resort to inquiry, document inspection, observation and any other audit technique deemed appropriate.

Site visits
Article 6
1
The verifier shall carry out site visits in order to gain sufficient understanding of the procedures described in the monitoring plan and validate that the information therein is accurate.
2
The verifier shall determine the location or locations of the site visit after taking into consideration the place where the critical mass of relevant data is stored, including electronic or hard copies of documents of which the originals are kept on the ship, and the place where data-flow activities are carried out.
3
The verifier shall also determine the activities to be performed and the time needed for the site visit.
4
By way of derogation from paragraph 1, the verifier may waive a site visit provided that one of the following conditions is fulfilled:
a
it has sufficient understanding of the ship's monitoring and reporting systems, including their existence, implementation and effective operation by the company;
b
the nature and level of complexity of the ship's monitoring and reporting system are such that a site visit is not required;
c
its ability to obtain and assess all requisite information remotely.
5
If the verifier waives a site visit pursuant to paragraph 4, it shall provide justification for not performing site visits in the internal verification documentation.

Addressing non-conformities in the monitoring plan
Article 7
1
Where the verifier identifies non-conformities in the course of the assessment of the monitoring plan, it shall inform the company thereof without undue delay and request relevant corrections within a proposed timeframe.
2
The company shall correct all non-conformities communicated by the verifier and submit a revised monitoring plan to the verifier according to the agreed timeframe that allows the verifier to reassess it before the start of the reporting period.
3
The verifier shall document in the internal verification documentation, marking them as resolved, all non-conformities that have been corrected in the course of the assessment of the monitoring plan.

Independent review of the assessment of the monitoring plan
Article 8
1
The verification team shall submit the internal verification documentation and draft conclusions from the assessment of the plan to an appointed independent reviewer without delay and prior to communicating them to the company.
2
The independent reviewer shall perform a review to ensure that the monitoring plan has been assessed in accordance with this Regulation and that due professional care and judgment have been exercised.
3
The scope of the independent review shall encompass the complete assessment process described in this Section and recorded in the internal verification documentation.
4
The verifier shall include the results of the independent review in the internal verification documentation.

Verifier's conclusions on the assessment of the monitoring plan
Article 9
On the basis of the information collected during the assessment of the monitoring plan, the verifier shall without delay inform the company in writing of the conclusions reached and indicate whether the monitoring plan:
1. is assessed as being in conformity with Regulation (EU) 2015/757;
2. contains non-conformities that make it not in compliance with Regulation (EU) 2015/757.
SECTION 2

Verification of emissions reports

Information to be provided by companies
Article 10
1
Before the start of the verification of the emissions report, companies shall provide the verifier with the following supporting information:
a
a list of voyages carried out by the ship in question during the reporting period according to Article 10 of Regulation (EU) 2015/757;
b
a copy of the emissions report from the previous year where appropriate, if the verifier did not carry out the verification for that report;
c
a copy of the monitoring plan or plans applied, including evidence of the conclusions from the assessment carried by an accredited verifier, where appropriate.
2
Once the verifier has identified the specific section(s) or document(s) deemed relevant for the purpose of its verification, companies shall also provide the following supporting information:
a
copies of the ship's official logbook and of the oil record book (if separate);
b
copies of bunkering documents;
c
copies of documents containing information on the number of passengers transported and the amount of cargo carried, distance travelled and time spent at sea for the ship's voyages during the reporting period.
3
Additionally, and if applicable on the basis of the monitoring method applied, verifiers may ask the company to provide:
a
an overview of the IT landscape showing the data-flow for the relevant ship;
b
evidence of the maintenance and accuracy/uncertainty of measurement equipment/flow meters (e.g. calibration certificates);
c
an extract of fuel consumption activity data from flow meters;
d
copies of evidence of fuel tank meter readings;
e
an extract of activity data from direct emissions measurement systems;
f
any other information relevant to the verification of the emissions report.
4
In the event of a change of company, the companies involved shall exercise due diligence to provide the verifier with the above-mentioned supporting documents or information relating to the voyages performed under their respective responsibilities.
5
Companies shall retain the above-mentioned information for the periods set under the 1973 International Convention for the Prevention of Pollution from Ships (the MARPOL Convention) and the 1988 International Convention for the Safety of Life at Sea (the SOLAS Convention). Pending the issuance of the Document of compliance in accordance with Article 17 of Regulation (EU) 2015/757, the verifier may request any of the information referred to in paragraphs 1, 2 and 3.

Risk assessment to be carried out by verifiers
Article 11
1
In addition to the elements referred to in paragraphs 1, 2 and 3 of Article 15 of Regulation (EU) 2015/757, the verifier shall identify and analyse all of the following:
a
the inherent risks;
b
the control risks;
c
the detection risks.
2
The verifier shall consider areas of higher verification risk and at least the following: voyage data, fuel consumption, CO2 emissions, distance travelled, time spent at sea, cargo carried and aggregation of data in the emissions report.
3
When identifying and analysing the aspects referred to in paragraph 2, the verifier shall consider the existence, completeness, accuracy, consistency, transparency and relevance of the information reported.
4
Where appropriate in the light of the information obtained in the course of the verification, the verifier shall revise the risk assessment and modify or repeat the verification activities to be performed.

Verification plan
Article 12
The verifier shall draft a verification plan commensurate with the information obtained and the risks identified during the risk assessment. The verification plan shall include at least:
1. a verification programme describing the nature and scope of the verification activities and the time and manner in which they are to be carried out;
2. a data sampling plan setting out the scope and methods of data sampling relating to data points underlying the aggregated CO2 emissions, fuel consumption or other relevant information in the emissions report.

Verification activities concerning the emissions report
Article 13
1
The verifier shall implement the verification plan and, on the basis of the risk assessment, verify whether the monitoring and reporting systems, as described in the monitoring plan that has been assessed as satisfactory, exist in practice and are properly implemented.
To that end, the verifier shall consider carrying out at least the following types of procedure:
a
enquiry with relevant staff;
b
document inspection;
c
observation and walkthrough procedures.
2
If applicable, the verifier shall check whether the internal control activities described in the monitoring plan are implemented effectively. For that purpose, it may consider testing the effectiveness of documented controls on the basis of a sample.

Verification of reported data
Article 14
1
The verifier shall verify the data reported in the emissions report through: detailed testing, including by tracing them back to the primary data source; cross-checking them with external data sources, including ship-tracking data; performing reconciliations; checking thresholds as regards appropriate data; and carrying out recalculations.
2
As part of the data verification referred to in paragraph 1, the verifier shall check:
a
the completeness of emission sources as described in the monitoring plan;
b
the completeness of data, including those on voyages reported as falling under Regulation (EU) 2015/757;
c
the consistency between reported aggregated data and data from relevant documentation or primary sources;
d
the consistency between aggregated fuel consumption and data on fuel purchased or otherwise supplied to the ship in question, if applicable;
e
the reliability and accuracy of the data.

Materiality level
Article 15
1
For the purpose of verifying fuel consumption and CO2 emissions data in the emissions report, the materiality level shall be 5 % of the respective total reported for each item in the reporting period.
2
For the purpose of verifying other relevant information in the emissions report, on cargo carried, transport work, distance travelled and time spent at sea, the materiality level shall be 5 % of the respective total reported for each item in the reporting period.

Site visits
Article 16
1
The verifier shall carry out site visits for the purpose of gaining sufficient understanding of the company and the ship's monitoring and reporting system as described in the monitoring plan.
2
The verifier shall determine the location or locations for the site visit on the basis of the results of the risk assessment and after taking into consideration the place where the critical mass of relevant data is stored, including electronic or hard copies of documents of which the originals are kept on the ship, and the place where data-flow activities are carried out.
3
The verifier shall also determine the activities to be performed and the time needed for the site visit.
4
By way of derogation from paragraph 1, the verifier may waive a site visit provided that, on the basis of the outcome of the risk assessment, one of the following conditions is fulfilled:
a
it has sufficient understanding of the ship's monitoring and reporting systems, including their existence, implementation and effective operation by the company;
b
the nature and level of complexity of the ship's monitoring and reporting system are such that a site visit is not required;
c
its ability to obtain and assess remotely all requisite information, including correct application of the methodology described in the monitoring plan and verification of the data reported in the emissions report.
5
On the basis of the outcome of a site visit to an onshore location, where it concludes that an on-board verification is needed to reduce the risk of material misstatements in the emissions report, the verifier may decide to visit the ship.
6
If the verifier waives a site visit pursuant to paragraph 4, it shall provide justification for doing so in the internal verification documentation.

Addressing misstatements and non-conformities in the emissions report
Article 17
1
Where the verifier identifies misstatements or non-conformities in the course of the verification of the emissions report, it shall inform the company thereof without undue delay and request relevant corrections within a reasonable deadline.
2
The verifier shall document in the internal verification documentation, marking them as resolved, all misstatements or non-conformities that have been corrected in the course of the verification.
3
Where the company does not correct the misstatements or non-conformities referred to in paragraph 1, the verifier shall, before issuing the verification report, ask the company to explain the main causes of the misstatements or non-conformities.
4
The verifier shall determine whether the uncorrected misstatements, individually or together with other misstatements, have an impact on the total reported emissions or other relevant information and whether that impact leads to material misstatements.
5
The verifier may consider misstatements or non-conformities which, individually or together with other misstatements, are below the materiality level set in Article 15 as material misstatements where that is justified by their scale and nature or by the particular circumstances of their occurrence.

Conclusion of the emissions report verification
Article 18
To complete the verification of the emissions report, the verifier shall at least:
1. confirm that all verification activities have been carried out;
2. perform final analytical procedures on the aggregated data to ensure that they are free of material misstatements;
3. verify whether the information in the report satisfies the requirements of Regulation (EU) 2015/757;
4. before issuing the report, prepare the internal verification documentation and the draft report and submit them to the independent reviewer in accordance with Article 21;
5. authorise a person to authenticate the report on the basis of the conclusions reached by the independent reviewer and the evidence of the internal verification documentation, and notify the company thereof;
6. notify the Commission and the ship's flag state whether the conditions for issuing the document of compliance are fulfilled.

Recommendations for improvement
Article 19
1
The verifier shall communicate to the company recommendations for improvement in relation to uncorrected misstatements and non-conformities not leading to material misstatements.
2
The verifier may communicate other recommendations for improvement that it finds relevant, in the light of the outcome of the verification activities.
3
When communicating recommendations to the company, the verifier shall remain impartial vis-à-vis the company, the ship and the monitoring and reporting system. It shall not jeopardise its impartiality by giving advice or developing parts of the monitoring and reporting process pursuant to Regulation (EU) 2015/757.

Verification report
Article 20
1
On the basis of the information collected, the verifier shall issue a verification report to the company on each emissions report subject to verification.
2
The verification report shall include a statement verifying the emissions report as satisfactory or unsatisfactory, in case it contains material misstatements that were not corrected before the report was issued.
3
For the purposes of paragraph 2, the emissions report shall be considered to have been verified as satisfactory only if it is free of material misstatements
4
The verification report shall contain at least the following elements:
a
the name of the company and identification of the ship;
b
a title making it clear that it is a verification report;
c
the identity of the verifier;
d
a reference to the emissions report and the reporting period subject to verification;
e
a reference to one or more monitoring plans that have been assessed as satisfactory;
f
a reference to the verification standard(s) used;
g
a summary of the verifier's procedures, including information on site visits or the reasons for waiving them;
h
a summary of significant changes to the monitoring plan and activity data in the reporting period, where applicable;
i
a verification statement;
j
a description of uncorrected misstatements and non-conformities, including their nature and scale, whether or not they have a material impact and the element(s) of the emissions report to which they relate, if any;
k
where applicable, recommendations for improvement;
l
the date of the verification report and signature of an authorised person on behalf of the verifier.

Independent review of the emissions report
Article 21
1
The independent reviewer shall review the internal verification documentation and the draft verification report to verify that the verification process has been conducted in accordance with this Regulation and that due professional care and judgment have been exercised.
2
The scope of the independent review shall encompass the complete verification process laid down in this Section and recorded in the internal verification documentation.
3
After the emissions report has been authenticated in accordance with Article 18(e), the verifier shall include the results of the independent review in the internal verification documentation.
Commission Implementing Regulation (EU) 2016/1928 of 4 November 2016 on determination of cargo carried for categories of ships other than passenger, ro-ro and container ships pursuant to Regulation (EU) 2015/757 of the European Parliament and of the Council on the monitoring, reporting and verification of carbon dioxide emissions from maritime transport (OJ L 299, 5.11.2016, p. 22).