How to find the optimal compliance strategy?
If you remember, we have already talked about this topic in an earlier video but because it's probably the single most important decision for shipping companies we have decided to release another video about the optimal compliance strategy.
As mentioned previously, there are basically 2 ways to comply:
- You can do as much as possible in-house and use a third-party verifier (as required by the regulation)
- Or you can outsource the whole compliance process to a MRV specialist.
Which of these compliance strategies is best for you?
This depends on time and resources, that is to say do you have qualified staff to handle MRV compliance in-house - ideally somebody who has experience with MRV systems or European emissions regulation.
And of course, costs also play an important role (if not the most important role). So we recommend you compare total compliance costs between the two options.
While total costs of outsourcing are relatively easy to estimate, what is much more challenging is to come up with some reliable numbers for handling everything in-house. Even if you know the different steps towards the document of compliance, the problem is you actually don't know how long the plan or emissions report preparation and verification takes unless you do it yourself.
In addition, having somebody perform these tasks who is not fully qualified bears the risk of making mistakes which can turn out to be costly. This can reach from additional time you have to put in for plan and report modifications or re-submissions to additional verification costs and penalties, foregone profits or costs of a possible reputational damage, for example, if your ship is detained by port state control.
Don't rush into a decision. Use the many free resources available to understand the regulation before you make a decision on whether to handle compliance in-house or to outsource this process to a MRV specialist. This is not to say that you should wait until the last minute. In contrast, we recommend you give this topic priority because we are fast approaching the first compliance deadline of 31 August 2017.
We also recommend you request quotes from more than one consulting or verification provider. Pay attention to the scope of the service and to the pricing structure. Some charge per service rendered. Some others charge a flat fee per calendar year. So for a meaningful comparison, you might want to look at costs over a period of three or four years. This makes sense because prices for the preparation and verification of a monitoring plan and emissions report are not necessarily the same. So please keep this in mind when making a final decision.