NEWS & BLOG
Views: 13 Author: Site Editor Publish Time: 2022-11-11 Origin: Site
"Reducing carbon emissions" has been a hot topic in the shipping industry in recent years.
It is understood that shipping accounts for 3% of global greenhouse gas emissions. If the energy structure is not changed, it may exceed 20% of global emissions by 2050.
Today, the official entry into force of Annex VI of the International Convention for the Prevention of Pollution from Ships (MARPOL), a key measure to achieve decarbonization and emission reduction, fired the first shot of the introduction of the Energy Efficiency Index (EEXI) and Carbon Intensity Index (CII) for existing ships.
EEXI and CII accreditation requirements come into effect on 1 January 2023 which means the first annual report will be completed in 2023 and an initial CII rating will be given in 2024.
In 2018, the International Maritime Organization (IMO) set a carbon emission reduction target for the shipping industry: a 40% reduction in carbon intensity in 2030 from a 2008 baseline to a 50% reduction in total annual greenhouse gas emissions by 2050.
The amendments to Annex VI of the International Convention for the Prevention of Pollution from Ships (MARPOL) were developed under the framework of the IMO's Initial Strategy for Reducing Greenhouse Gas Emissions from Ships agreed in 2018, requiring ships to reduce greenhouse gas emissions by improving their energy efficiency in the short term .
In addition to EEXI, the amendment also proposes CII and SEEMPPART III requirements.
This amendment is also hailed as the most important environmental legislation by the IMO since the introduction of the global "Sulphur Limit" in 2020.
01. What are the new compulsory measures?
As an incentive to reduce the carbon intensity of all ships by 40% by 2030 from a 2008 baseline, all ships will be mandated to calculate two ratings:
The Existing Ship Index (EEXI), which is used to determine the energy efficiency of its ships, as well as the Carbon Intensity Indicator (CII) for its annual operations and the associated CII rating.
Carbon intensity links greenhouse gas emissions to the distance a cargo is transported.
02. What is the existing ship energy efficiency index?
The EEXI value achieved by a vessel represents its energy efficiency compared to the baseline. The ship's achieved EEXI will then be compared to the required energy efficiency index for existing ships.
For ships of 400gt and above must be calculated according to the different values set for the ship type and size category.
The calculated EEI value for each ship must be lower than the required EEI to ensure that the ship meets the minimum energy efficiency standards.
03. What is the carbon intensity index rating?
The CII determines the annual reduction factor required to ensure continuous improvement in the operational carbon intensity of a ship within a specified class level.
The actual achieved annual operational carbon emission factor must be recorded and verified against the required annual operational carbon emission factor so that the carbon intensity rating can be determined.
04. How will the new rating work?
Depending on the ship's CII its carbon intensity will be rated A, B, C, D or E (A being the highest rating).
Rating means majorsuperior, minorsuperior, moderate, minorinferior or inferior.
The performance level will be recorded in the Declaration of Conformity and further detailed in the ship's Ship Energy Efficiency Management Plan (SEEMP).
Ships rated D or E for three consecutive years must submit a Corrective Action Plan showing how the ship will achieve the required C or above.
IMO likewise encourages relevant administrations, ports and other stakeholders to provide incentives for Class A or Class B ships, as appropriate.
Ships running on low-carbon fuels can receive higher ratings than ships running on fossil fuels. In addition, ships can also improve the CII rating of ships through other measures. E.g:
✓ Clean the hull to reduce ship resistance;
✓ Reduce ship speed and optimize ship route;
✓ Install low energy bulbs;
✓ Install solar/wind auxiliary power supply inside the boat.
The new measures have sparked concerns, with industry forecasting that 10% of the global container fleet will be absorbed.
A review of the CII and EEXI will be completed in early 2026 Many shipping players have expressed unease about how the regulations are being practiced in practice.
Concerns were raised in the early years that after the CII and EEXI came into force, a large number of ships may not be able to achieve the necessary ratings soon and a large number of capacity will be absorbed.
According to the survey, two-thirds of current older LNG carriers with steam turbine propulsion or four-stroke dual-fuel electric propulsion will likely fail to meet acceptable Carbon Intensity Indicator (CII) rating requirements.
A shipping consulting firm once said that most of the world's bulk carriers are "non-environmentally friendly". If the existing fleet is not urgently rectified or dismantled on a large scale, 68% of dry bulk carriers will not be able to meet the requirements that will take effect in 2023. Existing Energy Efficiency Index for Ships (EEXI) compliance requirements.
Compliance rates for other types of ships are expected to be 20%-30%.
MSC has also expressed concerns about this recently. A spokesman for the company said the CII should not effectively penalize ships for short-distance transactions, adding:
"It would be better to have an operational metric that rewards more productive ships including based on the cargo they carry rather than theoretical values that may not be relevant to transport work."
The spokesman said that MSC is ready for the new measures, but if the calculation of CII is not changed, about 7%-10% of the global container fleet will be absorbed.