IMO Carbon Measures - Latest update from Digital AnalyticsPosted on 27 Jun 2022
By Alastair Stevenson, Head of Digital Analytics, Simpson Spence Young.
The IMO’s short term measures to reduce the carbon intensity of shipping, as part of wider maritime decarbonisation goals, take their next step in 2023 with the introduction of the Energy Efficiency eXisting ship Index (EEXI) and Carbon Intensity Indicator (CII) regulations.
The two measures are partly related as EEXI improvements should benefit the CII but, at the same time, EEXI compliance potentially enforces slower steaming speeds and adversely affects fleet supply.
SSY’s estimation and analysis of EEXI values for tankers and bulkers suggests that more than three-quarters of the existing fleet will not attain EEXI baselines in the first instance and will need to take action to achieve compliance. SSY assume an overridable engine power limitations (oEPL) compliance pathway for all vessels, excluding a relatively small number severely non-compliant vessels that are scrapped.
Paradoxically, despite the widespread (assumed) imposition of oEPLs, the effect on vessel operations over the course of a year is estimated to be quite small. This reflects the relatively small number of hours where steaming speeds would exceed oEPL limits.
Nevertheless, small environmental gains associated with EEXI compliance can be measured, with modest improvements expected in the AER, CII and annual CO2 emissions. However, these CII gains are less significant when they are adjusted for both the lower annual ‘work’ (distance travelled) and lost supply caused by EEXI compliance.
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