IMO confirms new carbon intensity measures for shipping

Market: Biofuels, Emissions, Oil products
18/06/21

The International Maritime Organisation (IMO) has agreed new carbon intensity reduction targets at its latest Marine Environment Protection Committee (MEPC) meeting.

The IMO will require ships to calculate an Energy Efficiency Existing Ship Index (EEXI) and begin assessing an annual operational carbon intensity indicator (CII) and a CII rating.

The requirements for EEXI and CII certification will come into effect from 1 January 2023.

The EEXI measure will require ships over 400t gross tonnage (gt) to meet a baseline energy efficiency target. The CII is a carbon intensity rating and ships will be rated from A-E annually.

The IMO wants port authorities to create incentives for vessels with a rating of A or B to boost the effectiveness of the new measures. A rating of E will require an immediate corrective action plan, as would a rating of D for three consecutive years.

The EEXI and CII are both operational measures and can be improved by slow steaming, wind assist and fuel choice, the IMO said.

The overall carbon intensity reduction target from these measures is 11pc by 2026 compared with 2019, and the IMO wants to increase the target then.

The IMO wants shipping, which makes up around 3pc of the world's carbon emissions, to cut its carbon intensity by 40pc in 2030 compared with 2008, and to reduce greenhouse gas emissions by 50pc and CO2 emissions by 70pc by 2050 compared with 2008.

The MEPC also briefly considered the establishment of an International Maritime Research Board to oversee a $5bn maritime decarbonisation fund. The IMO said this will be discussed further at the next MEPC meeting in November.

A number of nations have backed a decarbonisation fund as have several members of the shipping industry.

Elsewhere, the MEPC also considered a proposal for a $100/t tax on heavy fuel oil usage. This proposal will be considered at IMO meetings in 2022 and 2023.

By Nana Kutin

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