The adoption of CII measure was the key tangible outcome of the IMO’s MEPC 76 last summer for the future of shipping emissions, which left the shipping industry divided regarding the level of ambition agreed for reducing the sector’s environmental footprint.
Although the measure
practically enters into force as late as 2023, shipowners are already in the
process of getting their ships certified for EEXI and calculating CII at the
same time, in order to be prepared. But what does this CII refer to?
What is the CII?
Applying to all cargo, RoPax, and
cruise ships above 5,000 GT, the CII is an operational index based on the
Annual Efficiency Ratio (AER). This ratio is given in grams of CO2 emitted per
cargo-carrying capacity and nautical mile, measuring all carbon emissions from
all ballast and laden voyages, anchorage, and port stays, all divided by the
deadweight and distance sailed in a year.
In simple terms, the Carbon
Intensity Indicator (CII) is a measure of how efficiently a ship transports its
cargo. Based on this, the ship is then given an annual rating ranging from A to
E:
A – major superior
performance level
B – minor superior
performance level
C – moderate performance
level
D – minor inferior
performance level
E – inferior performance level
The rating thresholds will
become increasingly stringent towards 2030, with the carbon reduction factor
starting from 5% in 2023. After this, 2% will be added yearly. A ship rated D
or E for three consecutive years will need to submit a corrective action plan
explaining how the performance level can be increased.
What is SEEMP and how does it relate to
CII?
The aforementioned
performance level will need to be recorded in the ship’s Ship Energy Efficiency
Management Plan (SEEMP), a mandatory, ship-specific document that lays out the
plan to improve a vessel’s energy efficiency in a cost-effective manner. The
SEEMP shall include the Ship Fuel Oil Consumption Data Collection Plan (DCP),
which includes a description of the methodology for data collecting and the
reporting processes.
What does the CII practically mean for
ship owners?
Beginning January 1st, 2023,
ship owners will be required to document their Attained Annual CII and verify
it against the Required Annual CII to determine their vessel’s operational
carbon intensity rating. This means that they can start already to prepare the
following as part of their SEEMP:
- A
description of the methodology to be used to calculate the ships Attained
Annual Operational CII, and the process that will be used to report this
value to the Administration;
- The Required
Annual Operational CII for the next 3 years;
- An
implementation plan documenting how the Required Annual Operational CII
will be achieved during the next 3 years; and
- A procedure
for self-evaluation and improvement.
How is the CII calculated?
For Bulk carriers, Tankers, Container ships, Gas carriers, LNG carriers, Ro-Ro cargo ships, General cargo ships, Refrigerated cargo carriers, and Combination carriers, the calculation method used is:
For cruise passenger ships, Ro-Ro cargo ships, and Ro-Ro passenger ships, the calculation method used is: What are possible options for compliance?
From a technical perspective,
all ship owners and shipbuilding stakeholders must consider and assess how they
will support compliance with EEXI. There are several technical and operational
improvements possible for shipowners who must reduce their vessel emissions and
improve their fuel consumption, such as:
- Switching to
alternative, low-carbon fuels
- Optimizing operations
- Reducing speed
- Retrofitting
vessels with energy-efficient technology
- Alternative
propulsion techniques (e.g., wind assistance)
Meanwhile, it is possible
that charterers will also have a major influence over the CII by selecting the
speed of the ships they charter.
What is the difference between the EEXI
and CII?
The EEXI is a one-time
certification equivalent to its predecessor, the EEDI (Energy Efficiency Design
Index) phase 2 or 3 concerning design parameters of the vessels. The EEXI
measures CO2 emissions per transport work, purely considering the ship’s design
parameters. The CII is an operational indicator to be assessed annually from
2023 with yearly stricter emission limits. The EEXI and CII are applicable to
the same ship types. The difference is that CII ratings will apply to ships
5,000 GT and above regardless of propulsion type, according to DNV.
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