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Shipping Trade Associations Call for Changes to IMO’s Carbon Intensity Indicator Regulation

Mike Schuler
Total Views: 1036
July 11, 2024

A coalition of leading shipping trade associations has issued a joint policy statement urging changes to the International Maritime Organization’s (IMO) initial Carbon Intensity Indicator (CII) regulation, citing flaws that hinder the industry’s efforts to reduce greenhouse gas (GHG) emissions.

The IMO defines the CII as a metric that determines the annual reduction factor needed to ensure continuous improvement in a ship’s operational carbon intensity within a specific rating level. Ships are rated from A (best) to E (worst), with poor ratings potentially requiring corrective actions such as hull cleaning, speed optimization, or the use of low-energy lighting and alternative fuels.

However, the trade groups argue that the current CII metric unfairly penalizes efficiently-operated cargo-carrying ships while favoring empty vessels. Additionally, ships are penalized for time spent at ports, which is often beyond their control due to port congestion and inefficiencies.

The industry is committed to achieving net-zero emissions by 2050, in line with the IMO’s 2023 Strategy on Reduction of GHG Emissions from Ships. Nevertheless, the current CII regulation does not accurately reflect each ship’s efficiency, potentially leading to misleading ratings and unintended adverse consequences for some ships.

In March 2024, the IMO’s Marine Environment Protection Committee (MEPC) acknowledged these concerns and agreed that they should be addressed during the CII review process, which will continue at the MEPC 82 session in September 2024.

The policy statement, endorsed by BIMCO, CLIA, ICS, INTERCARGO, INTERMANAGER, and INTERTANKO, calls for the CII system to be amended to avoid unintended consequences that contradict the goal of reducing GHG emissions. The statement also urges stakeholders, including public administrations, flag states, and ports, to recognize the current system’s shortcomings and work towards a more accurate CII methodology.

The statement reiterates that the shipping industry remains committed to sustainable practices, and the industry looks forward to participating in the CII review process, proposing revisions to better reflect a ship’s actual efficiency.

The Joint Policy Statement can be found here.

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