INSIGHTS
IMO Carbon Measures - Latest update from Digital Analytics
Posted 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.
Read the full Tanker report here
Read the full Dry Cargo report here
While every care has been taken to ensure that the information in this publication is accurate, SSY can accept no responsibility for any errors or omissions or any consequences arising therefrom. Figures are based on the latest available information, which is subject to subsequent revision and correction. The views expressed are those of SSY Digital Analytics and do not necessarily reflect the views of any other associated company. Reproducing any material from this report without permission from SSY is strictly prohibited. See https://www.ssyonline.com/client-tscs/ for our terms and conditions.
